Government Bonus from Lifetime iSA

Hi All,

So i am a little short on the £18600 limit, around £1.50
I have a lifetime ISA where i received the government bonus

Would this count as income from non employment similar to interest received on savings?

Thanks in advance

waseem1234 wrote: ↑

Sun Feb 16, 2020 10:12 pm

I have a lifetime ISA where i received the government bonus

Would this count as income from non employment similar to interest received on savings?

I don't know a definite answer to this, but given the government bonus is not actually interest received on savings nor is the bonus one of the other specified allowable source of non-employment income, I would guess the answer is likely to be no.

That said, any interest received from Lifetime ISA savings or any other savings accounts could conceivably be used if the requirements are met and the specified evidence can be provided..

waseem1234 wrote: ↑

Sun Feb 16, 2020 10:12 pm

I have a lifetime ISA where i received the government bonus

Would this count as income from non employment similar to interest received on savings?

I doubt it. Essentially the bonus on the Lifetime ISA is effectively a return of the income tax that has been paid on the amount that was invested in the Lifetime ISA. As it is a return of the income tax, that amount would have been included in your gross earnings/salary.

Also, while the bonus is nominally in your account, you can only access it at the time of either purchasing a first house or at the time of retirement. Else, you would pay a fine which is more than the bonus that you have earned. So you would not have easy access to the bonus component of the ISA.

So, I think it is unlikely to count as an earning.

Thanks for your replies all - I have a meeting with a Immigration adviser next week so will share what he says about this.