Lack of details may delay LISA launch

An incoming savings vehicle engineered for people who work for themselves may be stalled because of the government’s failure to give providers enough details in time, it has emerged.

The Lifetime ISA, promised by George Osborne in his Budget as a fillip for one-man bands, is meant to be introduced on April 6th 2017 for the under 40s, or those nearer retirement age if IPSE gets its way.

It will let people aged over 18 pay in up to £4,000 a year and get a taxpayer-funded bonus of up to £1,000. It will also offer full, tax-free withdrawal after the user’s 60th birthday.

But LISA providers have reportedly warned that key details pertaining to the accounts have not been disclosed by the government, putting the launch date in question.

Details of contribution limits are yet to be provided, reported the Financial Times, which also understands that details about how the taxpayer bonus will be paid are yet to be disclosed too.

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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