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The new tax year – What it means for your Lifetime ISA

23.08.2021

By Beehive Money

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With the new tax year approaching we’ve made it easier for you to understand what this means for your savings. Here are a few things that you should know. 

When does the new tax year start? 

The new tax year starts on 6th April each year and this means that your ISA allowance of £20,000 will reset. 

What does the new tax year mean for my Lifetime ISA? 

The new tax year means that, if you're under 50 your Lifetime ISA annual allowance refreshes so that you have another £4,000 to deposit from April 6th until next April 5th. This isn’t dependent on when you opened your account, your £4,000 is based on the tax year not a chronological 12 months from when you opened your LISA. This also means that you’ll have an additional £1,000 bonus to claim over the next tax year. If you have a Beehive Lifetime ISA we’ll also add the interest that has been earned over the last year (or from when you opened the account if it was within the last 12 months). 

Do I need to open a new Lifetime ISA? 

No, you can continue to save into your open Lifetime ISA in the new tax year. 

When's the last day to deposit into my Lifetime ISA to get my bonus? 

5th April is the last day that you can deposit into your Lifetime ISA for this tax year; although we recommend depositing funds around a week before 5th April to ensure that they reach the account before the new tax year starts. Just so you know, if you deposit more than your remaining allowance the whole deposit will be returned.

Your bonus will be added to the account up to nine weeks after your deposit, this could be within the new tax year, but it’ll still count towards the previous tax year’s bonus as that is when we received your deposit. 

How can I find out what allowance I have remaining? 

If you’re not sure how much allowance you have left for this tax year you can log in and chat with one of our Customer Advocates via Beebot and they’ll be able to let you know.  

How do I deposit into my account? 

You can deposit funds via your online banking using your Lifetime ISA account number and our sort code which is 60-95-93. Simply send the funds to us like you would a normal bank transfer. This can be from any account unless it’s your first deposit – this one needs to be from your Nominated Bank Account. 
If you need help with depositing into your Beehive account then chat to one of our friendly Customer Advocates.  

What will happen if I am transferring my Lifetime ISA? 

If you’re transferring your Lifetime ISA to us we’ll add any interest earned from the date that your previous provider has sent your savings to us. Please don’t fund your account until the transfer is complete. 

What does the new tax year mean for my ISA?

If you don't have a Lifetime ISA and hold an ISA, depending on the interest payment date outlined in the terms of your account, your interest will be paid into your account and your £20,000 allowance will be reset. Remember, you can only pay into one Cash ISA per tax year.  Find out more about tax-free savings accounts in our helpful guide. 

If you need any further help or guidance, please chat with BeeBot or call our Customer Advocates on 03444810933 who will be able to help.