Information about how your bonus will be paid for the 2017/18 tax year and the 2018/19 tax year and beyond, as well as making transfers into your Lifetime ISA, and what you can do if you want to close your account.

How and when will your bonus be paid?

We will email you to let you know once your bonus has been paid into your account.

The day we receive payment from HMRC, we pay it directly into your account, so you don’t lose any interest.

Transferring an ISA to a Lifetime ISA

In the 2018/19 tax year, you can transfer funds from existing ISAs into your Lifetime ISA between 6 April 2018 and 5 April 2019.

Any money you pay in during this time will count towards your £4,000 annual Lifetime ISA allowance and you’ll receive a 25% government bonus on your contributions.

The table below summarises how you can transfer funds into a Lifetime ISA.

Transfer into Lifetime ISA from: Details
Cash ISA, Stocks and Shares ISA or Innovative Finance ISA Transferring funds from a previous year’s ISA counts towards your £4,000 Lifetime ISA allowance but not your £20,000 annual ISA allowance. Money transferred from a current year’s ISA to a Lifetime ISA will be treated as part of your £20,000 ISA allowance.
Help to Buy ISA Any transfers will all count as part of the £4,000 annual Lifetime ISA allowance.
Another Lifetime ISA (Cash) Yes, there is no government charge to do this and your annual Lifetime ISA allowance is not affected.
Another Lifetime ISA (Stocks & Shares) Yes, there is no government charge to do this and your annual Lifetime ISA allowance is not affected.

Please note: if you've transferred a Lifetime ISA to us, the 12 month period before you can make a charge free withdrawal for your first house purchase starts from the date you originally opened your Lifetime ISA.

Changed your mind about having a Cash Lifetime ISA?

If you’ve changed your mind about having a Lifetime ISA, you can cancel your Skipton Online Cash Lifetime ISA within the first 30 days of opening the account and you won't have made a Lifetime ISA subscription for this tax year. You’ll get all your money back without incurring the government withdrawal charge, although you won’t receive the government bonus.

After 30 days, if you close your Lifetime ISA for reasons other than buying your first home, after the age of 60, or you are terminally ill, a 25% government withdrawal charge will apply. This means you would get back less than you paid in.

For example, if you had a balance of £5,000 in your Lifetime ISA (i.e. you used your full annual Lifetime ISA allowance of £4,000, plus received the £1,000 government bonus) and closed your account, the 25% withdrawal charge would mean you would be charged £1,250, leaving you with £3,750 – £250 less than you had paid in.

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