The huge new ISA and Lifetime ISA changes explained | Flight crew secrets

what cash you can keep in a shares ISO, when you can transfer, when you can't transfer, and uh quite a few people are up in arms about it. I'll be going through step by step exactly what it means for people. The bigger news this week though is it's been announced there is to be a new first-time buyer ISA. Place the Lifetime Icer. My guess is it'll be coming in next April. We've got the consultation document. I'll be talking you through the details of the new first-time buyer Icer.

Oh tell us this week, do you work for an airline, hotel or overseas travel business? If you do, what are the biggest mistakes people make when flying or going abroad? We've had so many I've had to split it into two and I'll be doing some this week and some next week. And then of course to finish Adrian, don't worry, we can squeeze it in. Right. We have a mastermind.

I did my shoulder in and I've had to call off the twenty five thousand press ups in a year challenge. I'm not allowed to do press ups at the moment and haven't been for six weeks. It's very

Right, so picture a cake. Think of a chocolate cake if you like for cash savings, or a strawberry cake for shares savings. Now, normally it's sitting there. Your cash savings gains interest, and the tax collector can come over and take a bite out of that.

Your shares might have capital gains, profits, or they might get dividends being paid each year, income on your shares or funds, or even interest from corporate bonds. And again, the tax collector can come along and take a bite out of the strawberry cake too. But I want you to think of an Icer like a wrapper, a protective piece of clink film you can wrap around some of the cake, a twenty thousand pound limit each tax year.

Once your cake is inside it, nothing changes. The cash is still cash. The chocolate cake's still chocolate. The shares are still shares, the strawberry cake is still strawberry. The only difference is now the tax collector Well, there's Klingfil. They can't take a bite anymore, so you get to keep it all.

That's the point of ISIS. And once you put your money in ISO, you don't just get the gain for that tax share. As long as it stays in the Kling film, you get it year after year after year. That's why some people have hundreds of thousands of pounds in cash ISIS.

And there are over 5,000 people who've been maxing out their shares ICER allowance each year and have over a million pounds all protected from the tax collector inside their ICER. Hopefully you understand what an ICER is now. Let's move to the meat. After the cake, probably a bad analogy. Well, I suppose you'd normally have the meat first then the just get on with it.

is that from April next year, under 65s will have the limit of what they can put in a new cash ISA reduced from£20,000 per tax year to£12,000 per tax year. The investment limit will stay at twenty grand. But what's been announced this week is a whole load of ancillary anti-avoidance rules, if you like, because there are ways you could utilize a shares ICER to be effectively a cash ICE so you could keep a£20,000 cash Icer in it.

And what the government's done this week is try and shut those routes down. The problem for me is it has a few knock-on unintended consequences that I will be explaining. After that We're gonna switch subject slightly to the proposals that from probably next year, next April, there will be a new first time buyer ICE to replace the existing first time buyer ISA, which is the Lifetime ICE.

That first time buy ISA will, just like the Lifetime ISA, give you a bonus on what you save towards your deposit. So I'm going to talk you through what's been proposed, what we know, we know quite a lot. What we don't know, we don't know quite a lot. And then after that, I'm gonna move in detail on the existing first time buyer product, the lifetime I

that you can currently save up to four thousand pounds a year in and get a thousand pound bonus towards your deposit from the state. So I'll talk you through exactly how that works. How you should use it now, knowing that the first time buyer ISA is coming in and the pros and cons of it. There's a lot to talk about. Let's do it.

twelve thousand in the cash ISA and the remaining eight thousand in the shares ISA. You could put it all in the shares ISA. You could put five thousand in the cash ISA. As long as you haven't got more than twelve thousand going into cash In that tax year, money already in d doesn't count. That doesn't matter. So if you've already got money in cash ISIS, the limit doesn't apply. So only for new money going in a tax year. And that will start from April twenty twenty seven.

But there have been a lot of small changes coming in. And we have to understand that by first thinking Why are they doing this? Well, I've spoken to Rachel Reeves about this a few times, and she has said the reason is they want young people to invest. They want to encourage more investment rather than saving, saying it's good for the economy. It is, it's good for the individual. Investing over the long term in a broad range of shares is good for the individual.

And so I agree with the reason personally. I disagree with the method. I think they should have done it by carrot, they're doing it by stick. I think it's gonna cause a lot of people to be pretty upset about it. I mean, to be honest, I was the one behind the carve out for the over sixty fives because I went in with the Chancellor twice, or as one of those people I should say, but I think I pr you know, I remember the discussion, it was pretty plain.

Because she said we want younger people to invest and I said, Why on earth are you going to prevent over sixty fives who were trying to de risk from putting more money in a cash ISA? And she said, Okay, fair and and the sixty fives came from that. So

Uh and some people don't like me for it. They say it's uh it's a generational divide. Well I don't like the whole policy, but we managed to get a carve out for some people. So let's go through what we've learnt this week, because this is important. First of all. When you have money in a shares ISA, you can currently keep it in a cash part of the shares ISA, sort of like a savings equivalent and an interest. That's set up.

so that you can hold your money you want to invest in there, but some people use it to keep money in for a longer period. They have now said that cash held in shares ISES and also innovative finance ICEs Will not be interest free and this is age irrelevant. So with this will happen for the over 65s too from next April. There will be a 22% tax on cash savings. Also, just to be really technical.

Sharia savings that don't pay interest, they pay an equivalent profit, will count in the same way. So there'll be a 22% tax on those two. Now I just want to be really clear here as I know this confuses some people. When we're talking about your savings being taxed in the UK. We're never talking about the savings themselves. We're talking about what the savings earn. In other words, the interest you earn on savings is what is taxable.

So when we say there will be a 22% tax on cash held inside a shares ISA, what that means is if the cash held inside a shares ISA earns interest, twenty two percent of the interest will be taxed. That's how it will work. Now of course it's worth remembering you would have the same if you didn't have your money inside an ISA. A basic rate taxpayer would pay twenty percent tax on their interest, a high rate taxpayer forty percent, a top rate taxpayer forty-five percent. Though of course

There is a thing called the personal savings allowance, which means a basic rate taxpayer outside of NISA can earn a thousand pounds of interest a year tax-free. A higher rate, 40% taxpayer,£500 of interest a year tax-free. So if you haven't used that up and you are

From next April going to be keeping cash inside a share's ICER. Well, there is an argument you'd be better off taking it out. But then of course, once you take it out, you've already used up your ICER allowance when you put it in, and it's all just a bit confused. Maybe they should have made it simpler. Anyway, back to the pot. Now my problem with this

So again, you can't put your money in a shares ISA and then decide, oh, I'm now gonna move it into a cash ICE, which you can do right now. So from next April that goes, though you will of course be able to move from money from a cash ICE to a shares ICER. Money market funds, which are investment funds that are pretty cash like. We thought they might have a tax charge on them too.

They've decided not to do that, but they've said you can't have all of your money market funds uh your whole shares I be money market funds. But they haven't put a minimum, so you could literally, you know, put a quid in a shares fund and all the rest in a money market fund if you wanted to. I'm not sure why you would, but you could if you wanted to do that.

Short date guilts won't count as cash like assets, which many were worried about. Uh if you know what they are, you know what they are. If you don't, you're probably not interested in them at the moment. I'll talk about more about that another date. And the final one on this, or get in touch, you've got questions on it.

We now know what age 65 means. And I have been asked this so many times, I can now tell you. It is not that you will suddenly be allowed to put£20,000 into a cash ISA on your birthday. They're saying in the tax year you turn sixty five. You will be allowed to put£20,000 in and every year beyond that. So if you turn 65 on the 5th of April, the day before the new tax year, you could actually put£20,000 in the day after your 64th birthday.

The ISA provider might be paying you three or four percent interest. You probably won't get as much as putting it in a cash ISA, but you can get decent interest. And you say, I want to put a twelfth of it into the market and buy that global index tracker each month. That way sometimes you'll be buying on a high, sometimes you'll be buying on a low, but you're trying to

spread it out, pound cost average it, so that you're putting your money in a year and you're not buying all too high a price. That's the idea. And so people then they keep their money in cash in a shares ISIS to do that. Equally If you've just sold a fund in a shares ISA, it goes into cash and you will want interest while that's being done and and you might hold it in there until you decide what to invest in next.

Now that cash, the savings bit, money you're holding in savings in a shares ISA is going to be taxable. And hopefully, as I've just explained the use of it, you can see why many people have a problem with it.

I mean it is done to discourage people manipulating the situation and using their twenty thousand pounds shares ISO limit as a cash ISO limit, but it is also going to have some I think some perverse market effects for those people who are trying to use their shares ISO sensibly to buy and sell their funds at o at the right time.

So if you think about it, you could have bought twenty pound pounds in four years ago, twenty thousand pounds in three years ago, twenty thousand pounds in two years ago, twenty thousand pounds in one year ago, twenty thousand pounds in this year. You would have, I mean, a hundred thousand pounds plus interest or growth if it was shares. All of that stays as it is right now. The limit is only being reduced on new money you put in each tax year from next April.

I think that's relatively unlikely on this particular one'cause they've been through a sort of rules consultation. But what she is trying to do is to try and encourage investing and putting barriers in the way to stop people shifting to cash from shares. That I mean that's that the aim that it's being done for. Whether we like it or not, there is a logic in the rules to an extent, even though I do think they have some perverse effects.

So with the lifetime ICE, for example, you can put up to four thousand pounds per tax share in, and the state adds twenty-five percent on top. So if you max it out with four thousand pounds in, that's a thousand pounds free per tax share. It is a huge benefit. Though there are lots of ifs and buts, such as with a lifetime ISA, you can only use it towards a property worth up to£450,000.

That doesn't sound like a problem for most of the country, but it can be a real pain for those people in London and the Southeast, where typical first-time buyer properties can often be over 450 grand. Anyway, what we're going to be talking about today is going to cause me some naming problems. I've always collectively called the Lysa and the help to buy Icer first-time buyer ICES. But now the government is proposing a new product called the First Time Buyer Icer. Over to my chat with Adrian.

for first time buyers and also for savings over the age of sixty, you'll be you can take the money out that George Osborne invented to try and take some cost out of his treasury and to defer it and add the cost to future Chancellors. So here's how it's gonna work. The first time buyer ICE is a minimum age 18. So far, there's no maximum age. Remember, the lifetime ICE is for 18 to 39. This does not have a maximum age.

But of course you have to be a first time buyer to get the bonus on it. The bonus will be on the amount saved. and it will be paid at exchange. Currently with the Lifetime ISA, the bonus is paid each month, but here you will only get it at exchange. We do not yet know the bonus rate. We do not yet know how much you'll be able to put in it. And we know it will have a limit on the value of the property you can purchase.

But we do not yet know and it is is not in the consultation, I mean if this is part of the consultation what that limit will be. However They say in the consultation, they aim, and remember consultations are proposals, so they can change after people feed in. They aim to align the LISA and and help to buy ISA property limit.

with the new first-time buyer property limit. Now the help to buy ISA property limit is£250,000 or£450,000 in London. The lifetime ISA property limit is£450,000 across the UK. So my view is if they're hoping to align all of them, the minimum the new threshold must be Is£450,000 because it would be unthinkable and political suicide to screw young people over by lowering the lifetime ISA cap.

When they've already put money in. So logic dictates it must be at least four hundred and fifty thousand. And if it isn't, people should rightly be absolutely up in arms about that. What we don't know is whether they will be uprating the four hundred and fifty thousand or whatever the new property threshold is with inflation or house prices each year. I will certainly be campaigning for that to be done so'cause that's caused a mass unfairness on the lifetime ICE.

A few more points. You will just like the other two have to be getting a residential mortgage to do it. It will be an individual product, so it depends on whether you're a first time buyer, not on who you're buying with. The bonus is paid at exchange, not completion.

which is good. The help to buy ISO was a big problem. It was paid too late in the process. This is paid at exchange, so you can use it not just as your mortgage deposit, but you can use it to help give a deposit to whomever you're buying the house off.

That also means there isn't a withdrawal penalty because unlike the lifetime ISO where the bonus is paid each month, here if you withdraw early and you're not buying a house, there's no need for a penalty because you haven't had the bonus yet. You must, like the lifetime ISO, you must have it open for a year to use it.

So, you know, you're gonna want to get a pound in as soon as possible. So you've got it open and get that clock ticking, just like I suggest with the lifetime ICER. It will be cash or shares, uh first time buyers ICES. Then most first time buyers you're only saving for the short term, you should probably wanna get it in cash. Transfers will be allowed between different providers and this is the crucial one, which I think is gonna cause a lot of people

Maybe frustrations, but maybe some positives when I explain it a bit more. If you have an existing help to buy ISA, which is a now closed product that many people still do have money in from when it was an open product. You will be allowed to transfer that into a first time buyer ISA. If you have an existing lifetime ISA or LISA, you will not be able to transfer it in to the first-time buyer ISA.

However, you will be able to use a Lysa and a First Time Buyer Isa together to buy a property and get the bonus on both. Which is quite important. Again, a reminder, all of this is consultation and proposals, and things could change.

So existing so licenses can continue. Just I was gonna say people can't put things in you, Lisa, but I think that's probably a bad phrase. I think we'll move on from that. Okay.

With the Lifetime ISA, you get the bonus on what you've contributed each month. Then you have the bonus sitting in your Lysa account, and then you have interest on top of both what you contributed and the bonus. So effectively you have a compounding benefit on the bonus. Now if they're going to add the bonus at exchange and they're only going to do it on the money on the way in, you're not getting that compounding benefit.

And I think there's an argument to say you should. I think it's an argument I will lose though.

Whether you're buying with someone else who is a first-time buyer, in which case they could also use this and get the bonus, or whether you're buying with someone who is not a first-time buyer, in which case they can't use this, but you can use this. So yes. Do it is not about who you buy with. It is a totally individual product, and the rules apply to you, not whomever you're buying the property with.

Now this is actually incredibly important and I'm gonna move this to a bigger point now. That means there is a chance that you can double up. And everybody who has the ability right now, everybody, if you are aged 18 to 39 and you do not have a lifetime ISA. Even if you have already bought a property, may I strongly suggest you put a pound in one.

Top payers are Plum and Money Box, both uh uh Plum pays four five point six percent, Moneybox five point eight percent interest. There's a big price war on that at the moment. And I just need to explain this in detail for anyone. There are a number of reasons why. If you are a first time buyer,

Because you'll be able to have a Lysa and a First Time Buyer ISA, you may be able to double up. The reason I would do it now is with both those products, you need to have had it open a year before you can get the first time buyer bonus. So if you put a quid in now, even if you're not expecting to buy your first house now.

And something were to happen next year that meant you suddenly could buy, you could dunk your four grand in the lifetime ISA, because that's the maximum you can have in each tax year, and you would instantly be eligible for a thousand pound bonus from the state or boost from the state.

And you could do well, you couldn't do it next year because the first time Bar Isa has to be open for a year. But if you bought in two years' time, you could get the bonus on both. So putting a quid in now gives you that facility. But even if you are a For uh you've already bought a property, so it isn't useful for you. If you're aged between 18 to 39, the lifetime ICER allows you.

to save for retirement and you get the twenty five percent bonus. Now for most people, certainly for all employees where you're in the auto enrollment scheme and you get matching contributions from your company. a pension is better. And for many self employed taxpayers a pension's better. Although it's much more it's quite similar putting money in a state pension the tax benefit for a basic twenty five percent rate taxpayer as it is putting money in a lifetime ICE.

But you do not know your future, and we have now been told the lifetime ISA will stay open. So I would absolutely make sure I have the facility of a lifetime ICER available to me because they're gonna shut it to new entrance probably next April. That's some guesswork. I would have the facility available to me by putting a pound in so that if at some point in the future it becomes worthwhile for you to use it as a first-time buyer.

Or it becomes worthwhile for you to use it for your retirement savings, or both, you have the facility, you have it open, and then you can use it. So just tell everybody aged 18 to 39, do you have a LYSA? If not, just get a quid in. Get it open. That's what really matters.

So why don't you start because my computer has just decided not to show them?

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Most policies would cover you if something happened now to stop you going in September even though it was after the period. But you'd want to be buying now a policy to start the day after your existing annual policy stops so that you're covered all the way through and you'd want to have that in place now to Okay. I Steve. Yeah. Working for Tui at Manchester.

Scary how many people are turning up to the airport with a due to expire passport. So let's be really plain about the passport check here. So this is me, not Steve now. There are two checks. For the on the day you enter the country, there needs to be at least six months left before the expiry date, or three months if you're going to the EU.

And even so, if you're going to the EU, you need to check, will your passport be under ten years old? So, because it used to work that you could get your passport, if you had eight months left on your passport. when you were renewing, you could get that eight months added to your new one. So your new one would last ten years and eight months. It means that you could be more than three months away from renewal of your passport

but your passport be over ten years old and that can stop you having entry. And I genuinely have people who get in touch with me who this has happened to, who have been denied boarding on the plane, which is bad, or worse, they've got on the plane and they've been denied entry when they land and sent back. Check your passport date. Steve is right. You do Sarah.

Sam used to work for an airline. So many people would get on a late night flight from a winter sun destination wearing little more than a bikini and then wonder why they were freezing on the plane and on landing back in the UK too. And no, we do not have any blankets we can give you.

Another lifetime ICE success for you. I saved for seven years and my partner six. So we got thirteen thousand pounds towards our deposit from the state with interest that got us to a twenty percent deposit on a three hundred and thirty thousand pound property. Thank you. So you can see how important it is. Here's your quick five lifetime ISO needs to knows.

The twenty five percent bonus is on everything you put in up to four thousand pounds a year till your age fifty, so if you started at eighteen and saved till age fifty you could have thirty three thousand pounds. If you put a thousand pounds in you'd have twelve hundred and fifty. If you put the maximum four thousand in, you'll have five thousand.

It can be used on your first residential home costing up to four hundred and fifty thousand pounds. It is defined first time barriers those who've never owned or part owned a home anywhere worldwide and you need to be getting a mortgage. This is the big warning though. If you're not buying a qualifying home and withdraw before age 60, there is an effective 6.25% penalty. What actually happens, let's not worry about the mass too much, is you get a 25% bonus on the money you've put in.

And then you get a 25% taken off the money that you've got in there when you withdraw. The way the maths works on that is effectively about six and a quarter percent less than you put in, you get back. Now I don't have a problem with the penalty in the generality, where I have a real problem with the penalty is if you've been saving your priced out of the market.

And that four hundred and fifty thousand pounds has not risen since twenty seventeen. So it's been frozen since they launched the product and you saved for the right reasons and now you want to buy your first property, but it's gone a four hundred and sixty thousand because you're in London and it's expensive. You're now having to pay a penalty.

To the state to get your first time deposit money out because you did what the state suggested you do and use a lifetime ICER to save for your first time buyer property. I have been campaigning on that for a long time. It has not been fixed yet. Uh we've already talked about how people buying together can have one each. That's probably where I'll stop because I know you got loads of questions.

Absolutely, as I mentioned before, I would be opening one now and getting a quid in now and then you've got a choice of which one is best for you, or you maybe you can use both when you get there. So have one open. O having one open doesn't stop you. And you can open with a quid uh the two best buys, Money Box and Plum.

because that's not in the proposals. Uh you will have to have it open a year to get the bonus. So when are you thinking about buying? When do you think you will be financially be in a position to buy?

Now you will only be able to get that bonus if you've had the property open if you've had the ICE open for a year. If you buy an 18 months time, you won't have done. But under the current proposals, unlike the lifetime ISA, If you don't if you're not gonna get the bonus, you can just take your money out with no penalty and you will have still got interest. So you will not be any worse than just putting it in a normal ISO or a normal savings account. It'll be the same.

And if you wait a little bit longer and you buy a little bit later, then you would get the bonus two, so you would be better off. So at the moment you need to be saving in just a top normal savings account or Cash ISA if you pay tax on your savings. where you can build up your savings with the most interest and then from next April you want to put your money as much as you're allowed to in the first time buyer ISA unless these proposals change when they become at real. Does that make sense?

You would pay the penalty of six point two five percent. Now you might be using your stocks and shares lifetime ISA for retirement savings, in which case they continue to put the money in because it doesn't look like that's changing. The consultation doesn't seem to be changing that at all. But if you're going to be using it and you want to use it for first-time buyer savings, then yes, there is a potential problem. Now, the only hope here.

is that the first-time buyer ISA consultation says it will align the thresholds of the lifetime ICE and the help to buy ISA with the first time buyer. And it could be higher. And they could start to increase it with inflation. We just don't know yet.

So whether I'm not sure I would be putting any new money in, I wouldn't necessarily be taking any money out. I certainly wouldn't be taking any money out because we don't know what's going to be happening and you would pay a penalty to take money out.

The interesting answer I gave to the person on question time who had forty thousand pounds in and wanted to buy a house above the threshold is Because you pay a 25% penalty to withdraw, he had£40,000, and that meant he'd only withdraw 30,000, and he was devastated by this.

and thinking I might keep it in for retirement, even though it's gonna potentially stymie me buying the house that I need for my family.'Cause when he had originally started saving it was for a young uh he was a young single man. My answer to him was, while you're thinking of this as forty down to thirty thousand.

If you had known this was going to happen, you would never have used a lifetime ICER. And you would have saved probably in a normal ICE where there's no withdrawal penalty. And you would have probably had£32,000 in because you wouldn't have had the bonus added. So the real loss is thirty-two thousand down to thirty thousand. I don't like that. I don't think that's how it should work, but that is the practical way to think of it.

And in that case I said to him, if you had to pay two thousand pounds to access your money, which is the real opportunity cost of having put it in a lifetime ISA, so that you could buy the house you want, would you? And his answer was yes, because I want to buy that house. In which case I said then I'd get on and I'd buy the house and I would just, you know, stamp and swear a bit about the two thousand pounds. But it's not actually a ten thousand pound loss.

So we have to do a lot of that type of thinking at the moment, but I would probably be holding putting any more in a lifetime ISA until I know the result of the consultation. And that should come before the end of this tax year.

So you will be able to put the money in later in this tax share if it's still right for you. So I would be holding off for now, yes. Um Adrian, shall we move to Mastermind? And and people, I've got lots more of Lea Lysa questions I'll be going through in the podcast. But let's play that Mastermind theme tune now.

Sh pretend we don't know the Dublant Tendre. Suddenly the garage door bursts open, and in screeches three minis, scattering jump leads and pine tree air fresheners, out steps a man in a flat cap looking slightly disappointed. Adrian, you were only supposed to blow the bloody doors off. Adrian, thrilled, climbs onto a pile of winter towers and says, You were only supposed to blow the bloody doors off.

I know, Adrian. That's my line. Anyway I can't keep this up. Anyway, I've got a problem, I'm losing it very badly. I used a claims management firm to handle a car finance misselling claim, but now I'm unhappy with them. their service, their fees, the whole caper. I've complained but to no joy. So how do I escalate this, Adrian? You work on that podcast. So Adrian, what we wanna know?

Why?

If they're regulated by the solicitor's regulation authority, you go to the legal ombudsman. Frustratingly, if you were passed from an FCA regulated claims firm to a solicitor, you may need to complain separately to each firm and go to both ombudsmen. So C was the correct answer. Why were people misled? Well the regulator says

People were signed up without agreeing to it or were pressured into it. And we have example on the podcast, the special pod we did a couple of weeks ago, of a woman who suddenly found that she got a letter from a claims firm'cause she'd just filled out their online

Are you owed motorfinance and had not realise that that actually meant she was signing up to the claims firm? In that case, make a formal complaint you should not be paying them a fee. Say I never signed up to you, I want to get out of it and go to the Ombudsman.

If you also feel you're misled about service, costs, or chances of success by the claims firm, you can make that formal complaint. If you weren't receiving information you should have given, such as free details or cancellation, you can make that complaint. And if you don't want to use the claims firm anymore because you know it's a m mass redress scheme and you know you can do it yourself, then they can charge you a reasonable fee

if you want to leave, but the reasonable fee should be based on the work they've done and hardly any work has been done yet because the whole scheme is still on hold. So what the regulator says is do not pay an exit or other fees if you want an independent check first. CMCs and law firms are obliged to make it clear to customers, including on their website, that free Ombudsman services are available and I made it before the music played. Thanks for having me, mate.

I'm glad I did actually get it get it back up again, otherwise we'd have been in trouble. Yeah, we got a heap of Lysa questions that came in. Mel asked For those of us using them for retirement, I'm self-employed, will existing lices already opened continue to function in the same way, i.e. the twenty-five percent bonus on a maximum of four thousand pounds? paid per year, paid in some weeks later. Many thanks.

I mean they can, but yeah. Well you can imagine what I'll be saying if they do do that and what many others will be saying too. Uh or they might decide not to align them, even though that's in the proposals, and if they're gonna make the first time buyer threshold lower than the lifetime buyer threshold,

then they would have to keep the lifetime ISA where it is. But um currently what they say is they're planning to align it. So I think they will all be the same from when the first time Bayer ISA comes in.

The lifetime ICE you will be able to use concurrently with the first time buyer Icer under the thresholds, so your other daughter may well be fine there. What should they both do? Stay as they are. Yes. My answer would be if those products are right for them now

I don't see any reason why right now you would change anything. Now, if they're not right for them and you're planning to buy properties above the threshold, then you might want to look at doing so depending on why I'm buying the properties. But assuming everything is right and Uh about the confusion, I think I have a little bit of sympathy here. I gave evidence to Treasury Committee about the lifetime ISA and I talked about its overcomplexity.

this dual use of using it for retirement savings and a first time buy, which are very different usage and the way the withdrawal penalty works, which is it incredibly unfair. And the fact that the big problem with lifetime ICE is

Mainstream providers just don't offer it because they're so scared they'll get done for misselling o over the retirement savings element because people should be using their auto enrollment pensions ahead of a lifetime ICER that they just didn't want that risk, so they don't offer it. Well, clearly that's a broken product.

So I think the new first time buyer ISA, which sounds to me like it'll be similar to the old help to buy ISA, which worked well, but with some of the problems fixed, the help to buy ISA was paid at the wrong point. It's paid at completion, not exchange. it should be paid at exchange. The putting money in a month wasn't very flexible for people. I think putting money in on lump sums is a much better way to go. So it sounds like

They're going back to the old help to buy ice or just having that simple product, which I think is probably a good move. Uh some will like the retirement savings element, but it's all very complicated. But unfortunately, going back to something simple means that you've now got three first time buyer ICE products, the help to buy, the lifetime and the first time buyer Icer itself that will be on the market consecutively, and that does add confusion in the transition.

the capital gains that you would pay on it the way that it works, but it needs a bit of reading. Uh and money market funds are more like cash funds. You can't have all of your shares ISA in money market funds. But uh if you have just a little in something else. So you could use those would be some of the options that if you wanted to de-risk just before you were going to be cashing it in for some purpose.

Rydyn ni'n cael ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud ei wneud Currently you can move from stocks and shares to cash as well, but you won't be able to from next April. So yeah, you've got total flexibility and there's a rate war at the moment, as I mentioned earlier, money box at five point eight.

Plum at five point six, so many people with cash licenses can easily increase their interest rate right now.

I'm telling you what the rules are, but providers can have their own rules. They don't have to accept transfers and they don't have to accept transfers from people who are over 40. So it is provider-based. But I think most of the providers that I'm mentioning will allow you to open for a transfer. I'll have to double check that, but I think they will. Final straight, Simon. Let's do it.

So that would be five hundred and fifty thousand pounds. Whether you can use that as a read across to what the new threshold should be is a very different matter. It just depends on what the government's thinking. They may well say, hey, we don't want to pelt people who've bank houses over four hundred and fifty grand. So I don't think you can do the read across but those are the answers.

And then you will be able to use it. But it is very difficult to do a workaround within the rules uh in your situation unless you're going to take ownership of that property and get a mortgage yourself to take to take part ownership of that property.

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