Transact says that its ISA wrapper fee applies only once, no matter how many ISA wrappers an individual holds with Transact.
Transact is one of a few providers to be ready for the 6 April 2017 LISA launch date. Other providers offering a Lifetime ISA include Hargreaves Lansdown with its HL Lifetime ISA. The HL Lifetime ISA will offer a full range of funds and shares, model portfolios, ETFs and corporate bonds and can be managed online, by phone, smartphone and tablet.
Transact says that from today advised clients can open a Transact LISA to start saving towards a first home or towards retirement, and receive the 25% government bonus that can be claimed on contributions.
The new wrapper can hold investments and cash, and Transact will accept new subscriptions and transfers from other ISA wrappers and ISA providers. Savers can add new subscriptions up to a maximum of £4,000 per annum, which will contribute to the overall ISA subscription limit for 2017/2018 of £20,000.
Help to Buy ISAs (valued at 5 April 2017) transferred to a LISA do not count towards the 2017/18 LISA allowance but are still eligible for the government bonus of 25%. Parents and grandparents can pay into a LISA opened by their child or grandchild. LISA investors must subscribe with their own funds, therefore payments from parents and grandparents would need to go via the client’s GIA.
Transact says it can also facilitate the payment of adviser fees from a designated GIA Fee Payment Wrapper ensuring the LISA tax benefits are maximised. Any adviser fees withdrawn from a LISA are considered to be withdrawals and would otherwise incur the 25% HMRC early withdrawal charge.
Jonathan Gunby, chief Development Officer at Transact, said: “We are pleased to offer the option to invest in a LISA with Transact as early as possible. We believe it is important to provide a wide range of investment and wrapper options for advisers, and their clients, to ensure full investment flexibility in order that financial plans can be implemented in an efficient way.”