No you don’t need to take any action. You can see your pending bonus on your dashboard alongside your Lifetime ISA pot.
Your bonus will be paid directly into your Lifetime ISA account. We’ll then invest the new funds automatically in line with your selected risk level on your Lifetime ISA pot. The investment will take place through the next investment cycle.
No. You will not have to pay any capital gains tax, dividend tax or income tax on the money inside them - including the 25% government bonus.
If you want to make a payment to your Lifetime ISA, just click the green “Pay in” button on your pot. You can pay-in using the debit card stored on your account or by adding a new debit card.
If you’ve set up auto-fill, it’s important that you review your ISA settings before the end of the tax year. For those customers with a Lifetime ISA we would recommend that you turn off auto-fill and manage the initial ISA subscriptions manually in the new tax year. This way you can make sure new funds you pay in, or non-ISA wrapped funds already in your account are ISA wrapped correctly.
From 6th April 2019, if you’ve decided that a Lifetime ISA is not for you within 30 days of opening the account, you can withdraw and close it without penalty. However, any market movements may impact the amount you receive.
If you've held it for more than 30 days, the government will charge you a 25% penalty on the total value of the withdrawal, unless it's for the purchase of a house, for retirement or as a result of terminal illness. This means you could get back less than you invested.
Once you’ve had your offer accepted you can instruct your solicitor to contact Nutmeg. Then we’ll organise for the funds to be transferred to them and used for your house purchase. Remember, it must be at least 12 months since the first contribution was made to your Lifetime ISA before you can withdraw funds from it to buy your first home.
You can have a Help to Buy ISA and a Lifetime ISA. However, you can only use the bonus from one of them towards buying a home.
If you want to use your Lifetime ISA for the 25% bonus to buy a home then you won't get the bonus with the Help to Buy ISA, but you can still keep and use the money plus the interest.
If you want to use your Help to Buy ISA for the 25% bonus for a home purchase, then you would have to pay a penalty to use your Lifetime ISA savings for that property. Or you can keep contributing to your LISA and receive the 25% government bonus and use the money for your retirement.
You may be able to transfer your Help to Buy ISA into a Lifetime ISA, but from the 2019/20 tax year, any funds transferred from a Help to Buy ISA to a Lifetime ISA will be treated as current year payments and count towards the annual Lifetime ISA limit. As a result, it won’t be possible to transfer your Help to Buy ISA if the balance is more than £4,000. If you’re able to combine your Help to Buy ISA with your Lifetime ISA, you will receive the 25% government bonus. Unfortunately, Nutmeg doesn’t offer Help to Buy transfers into our Lifetime ISA.