The UK government provides a bonus for Lifetime ISAs, which can significantly enhance your savings. The government adds a 25% bonus to your contributions made into your Lifetime ISA. This means that for every £4,000 you save in a tax year (maximum annual allowance for Lifetime ISA), the government will contribute an additional £1,000. As a result, the maximum bonus you can receive in a single tax year is £1,000.
Crediting Process
The government bonus calculation period starts from the 6th of each month and ends on the 5th of the following month. Then, the data is submitted to the HMRC by the 20th day of that month. The amount that occurs will be added to your Lifetime ISA account around the end of the month, depending on when HMRC will send the money to Plum.
For example, a monthly bonus claim for the period 6th August - 5th September 2024 should be submitted to HMRC by 20 September 2024 and credited to your Lifetime ISA account around the end of the month.
Government Bonus and LISA Transfers
In case you want to transfer your LISA into Plum:
If the transfer is completed before the 5th of the month, Plum will submit the bonus claim to HMRC.
If the transfer is completed after the 5th of the month, your previous provider will submit the bonus claim to HMRC and they will send the money to Plum once they receive it.
In case you want to transfer your LISA to another provider:
If the transfer is completed before the 5th of the month, your new provider will submit the bonus claim to HMRC.
If the transfer is completed after the 5th of the month, Plum will submit the bonus claim to HMRC and, once we receive the money, we will send it to your new provider.