Lloyds Help to Buy: ISA Conditions

Our agreement with you is made up of general conditions (contained in the Personal Banking Terms and Conditions & Banking Charges (PDF)) and additional conditions which are detailed below. If there is any overlap or conflict between the additional conditions and the general conditions, the additional conditions apply. Our Cash ISA Guide contains information about cash ISAs generally, including the savings limits that apply to payments into your Help to Buy: ISA, the limits on the amounts of bonus you can qualify for and on the value of any home you may want to buy. In addition, by applying for a Lloyds Help to Buy: ISA, you agree to be bound by the Government’s Help to Buy: ISA scheme rules. In these conditions, we call them the ‘Scheme Rules’. These explain in detail how the scheme works, and contain a number of important definitions and restrictions you need to be aware of. You can get a copy of these at www.helptobuy.gov.uk/isa at any time. The Scheme Rules use a number of particular terms. Where relevant we have used those in these conditions too. If there is any overlap or conflict between the Scheme Rules, and the explanation of the way our Lloyds Help to Buy: ISA works in these conditions, our conditions apply.

 

Our Help to Buy: ISA has a variable interest rate.  It is a restricted savings account, as you can only pay in the initial and subsequent monthly deposit amounts set for the Government’s Help to Buy scheme. Lloyds Bank plc has been approved as an ISA manager by HMRC, and is an Eligible ISA Manager for the Help to Buy: ISA scheme.

If you take part in the Government’s Help to Buy: ISA scheme, this will not mean you automatically:

  • qualify for any other financial product, either from us or from any other bank or building society; or
  • qualify for, or are eligible to participate in, any other Help to Buy scheme or programme offered by the Government.
1. ELIGIBILITY

1.1 Our Help to Buy: ISA is designed for customers who are saving to buy their first home, and who are eligible for the Government’s Help to Buy: ISA scheme.  The detailed eligibility requirements (including the definitions of an Eligible Customer, a Residential Property Owner and a First Time Buyer) are contained in the Scheme Rules.

1.2 To have our Help to Buy: ISA, you must meet the following conditions, and must let us know if you no longer meet any of them.  You must:

(a) be at least 16 years old with a valid national insurance number;

(b) be either (i) resident in the United Kingdom for tax purposes or (ii) a Crown employee serving overseas, or married to, or in a civil partnership with, such a person;

(c) not have exceeded your ISA subscription limit;

(d) not have previously received a Help to Buy: ISA bonus, unless it has been repaid in full to the Help to Buy: ISA scheme administrator (for example, if your house purchase did not go ahead);

(e) not already have an open Help to Buy: ISA;

(f) not be, or ever have been, a Residential Property Owner.

1.3 The Help to Buy: ISA must be in your sole name, and all funds deposited in it must belong to you.  You must not use it as security for a loan, or try to transfer it to anyone else.

1.4 Unless you also have an additional permitted subscription from the death of a spouse or civil partner, or you have previously closed another Help to Buy: ISA and now want to open a new one, you must not pay into more than one cash ISA, including your Help to Buy: ISA, in any one tax year.

1.5 The Government’s ISA rules mean that if you do not make a deposit into your Help to Buy: ISA in any tax year (other than the year of application) you will need to complete a new application form if you want to make deposits in a later year.

2. OPENING AND RUNNING YOUR HELP TO BUY: ISA

2.1 Your Help to Buy: ISA will start on the date you open your account. Your first deposit must be at least £1 and must be accompanied by a valid application. When you apply, we will ask you to declare that you are eligible to participate in the Government’s Help to Buy: ISA scheme, and meet the qualifying conditions for the bonus. Applications cannot be backdated.

2.2 Your Help to Buy: ISA will continue until you are ready to buy your first home. In order to claim a Help to Buy: ISA bonus, you will need to close your Help to Buy: ISA.  We will then notify the Help to Buy: ISA scheme administrator that your account has been closed, and will send you your Help to Buy: ISA Closing Documents.  Your Eligible Conveyancer will apply to the Help to Buy: ISA scheme administrator for the bonus as part of the conveyancing transaction. Further details on this application process are set out in condition 7 (Help to Buy: ISA bonus), and our Cash ISA Guide.

2.3 The administration of your Help to Buy: ISA savings will be carried out by Lloyds Bank plc.

3. DEPOSITS AND WITHDRAWALS

3.1 When you first start saving in a Help to Buy: ISA, you can pay in up to a maximum amount set by the Government.  In these conditions we call this an ‘initial deposit’, and the amount is included in our Cash ISA Guide.  You must pay your initial deposit into your Lloyds Help to Buy: ISA within 21 days of opening it.  You can choose to pay your initial deposit in one or more payments, up to the maximum.

3.2 You can make your initial deposit by:

(a) transferring from a cash ISA, a stocks and shares ISA , lifetime ISA or innovative finance ISA with us or another ISA manager which you have subscribed to in the same tax year or in previous tax years, as long as you do not transfer more than the maximum initial deposit amount. (Please bear in mind any interest you have earned, and remember that you cannot transfer part of an amount you have subscribed in the same tax year.);

(b) paying in your initial deposit at any branch

(c) transferring your initial deposit from another account, held with us or with another bank or building society.

3.3 While you have a Help to Buy: ISA, you can pay in up to a maximum monthly amount set by the Government.  In these conditions we call this a ‘monthly deposit’, and the amount is included in our Cash ISA Guide.  If you are saving in a Lloyds Help to Buy: ISA, you can only make one monthly deposit in any calendar month.  You must make it by standing order to be received by the 25th of the month. You can also make a monthly deposit payment in your first calendar month, in addition to the initial deposit.  These payments can be made separately or together.  You can change the amount you pay in in any month, and you do not have to make a monthly deposit payment in every month

3.4 You can make a withdrawal from your Help to Buy: ISA at any time, for example because you want to buy something with some of your savings.  However you will not be able to replace any amount you withdraw in your Help to Buy: ISA.  This means it will take you longer to achieve the maximum bonus you could qualify for.  You will also not be able to claim any Help to Buy: ISA bonus on any amount you withdraw.  This includes a withdrawal of savings by transferring money to another account, for example if you use Online Banking to transfer money from your Help to Buy: ISA to your current account.  It is important to remember that you must close your Help to Buy: ISA in order to claim your bonus.  You should not transfer or withdraw savings intended for the purchase of your first home without considering any effect on your bonus.

3.5  Help to Buy: ISA is a flexible ISA.  This means that if you withdraw all or part of the money you paid into it earlier this tax year, you can pay the equivalent amount into a stocks and shares ISA or innovative finance ISA before the end of this tax year as part of your annual ISA allowance.

4. TRANSFERING YOUR EXISTING ISA TO US

4.1 You can transfer your initial deposit from an existing ISA you have to a new Lloyds Help to Buy: ISA.  However, we can only accept transfers (including any interest) up to the initial deposit limit explained in condition 3.1. You cannot use an ISA transfer to pay in a monthly deposit.

4.2 If you ask to transfer some or all of your existing cash ISA savings to us as your initial deposit, we will contact your existing ISA provider within 5 days, and the process should not take more than 15 working days to complete. You must tell us within the 21 day period for making your initial deposit that you want to transfer your existing cash ISA savings to us.

4.3 If you ask to transfer some or all of your existing stocks and shares , lifetime ISA or innovative finance ISA to us as your initial deposit, the process should not take more than 30 days to complete. Again you must tell us within the 21 day period for making your initial deposit that you want to transfer your existing ISA savings to us.

4.4 You can also transfer from an existing Help to Buy: ISA you have with another ISA provider to a Lloyds Help to Buy: ISA.  If you do not transfer all your existing Help to Buy: ISA savings to us, you will not be able to replace the amount you do not transfer.  You will also not be able to claim any Help to Buy: ISA bonus for any amount you do not transfer.

4.5 Before you decide to transfer your ISA to us, please check the charges your existing ISA provider might apply. For example, if you have a fixed term cash ISA there may be a charge if you want to move your money out before the account matures. If you have a stocks and shares ISA or innovative finance ISA, your provider may impose exit charges or other costs. In addition, the investments you currently have will have to be sold and it is possible that you could lose out if there is a rise in the market while your transfer is processed. Additional rules apply to lifetime ISAs and a Government charge may apply to some withdrawals. You should ask your lifetime ISA provider for full details.

4.6 If you decide to transfer an existing Help to Buy: ISA you have with another ISA provider to a Lloyds Help to Buy: ISA, you can pay your monthly allowance either into your existing Help to Buy: ISA before transfer or into your new Lloyds Help to Buy: ISA after transfer (but not both).  Please remember that any monthly payment into your Lloyds Help to Buy: ISA must be by a single standing order payment to be received by us before the 25th of the month.

5. TRANSFERING YOUR HELP TO BUY: ISA TO ANOTHER ISA OR ANOTHER ISA PROVIDER

5.1 You can ask to transfer the whole of your Help to Buy: ISA to another Help to Buy: ISA, offered by us or another ISA provider.   This means you can still save in the Government’s Help to Buy: ISA scheme.  You must complete a transfer application with your new provider, who will send the transfer application to us. Within 5 working days of receiving the transfer application from your new provider, we will send your money and information to your new provider. It should take no more than 15 working days to transfer your Help to Buy: ISA.

5.2 If you transfer the whole of your Help to Buy: ISA to a non Help to Buy: ISA, offered by us or another ISA provider, we will treat your transfer request as an instruction to close your Help to Buy: ISA.  We will then notify the Help to Buy: ISA scheme administrator that your account has been closed, and will send your Help to Buy: ISA Closing Documents to you.  Your Eligible Conveyancer will still be able to claim a Help to Buy: ISA bonus when you are ready to buy your first home.

In the 2017/18 tax year, special rules apply if you want to transfer your Help to Buy: ISA to a lifetime ISA. Please ask your lifetime ISA provider for details.

5.3 If you transfer all or part of your previous years Help to Buy: ISA savings to a non Help to Buy: ISA, offered by us or another ISA provider, for example to start saving in a stocks and shares ISA, but you keep your Help to Buy: ISA with some savings in it, your Help to Buy: ISA will continue.  However, you will not be able to be able to claim any Help to Buy: ISA bonus for the savings you transfer.

6. INTEREST

6.1 When you have less than £1 in your Help to Buy: ISA, we will not pay interest on the amount in your account.

6.2 The interest rate is variable. You can find out the current interest rates at any of our branches, by telephoning us on the Interest Rates Helpline on 0345 300 0032, calls may be monitored or recorded. Alternatively, you can visit our website at www.lloydsbank.com/isas.

6.3 We will pay interest once a year on the anniversary of the date you opened your Help to Buy: ISA, or the next working day. As long as you and your Help to Buy: ISA continue to qualify, interest will be paid tax-free.

6.4 Interest can be added to your account or you can ask us to pay it into a different account held with either us or another bank or building society. If you arrange for your interest to be paid into a different account, income tax may be due on the interest earned.  (You are responsible for paying any tax due to H M Revenue & Customs.) .   You will also not be able to claim any Help to Buy: ISA bonus on any amount of interest you ask us to pay to a different account.

7. HELP TO BUY: ISA BONUS

7.1 As long as you and your Help to Buy: ISA qualify, your Eligible Conveyancer will be able to claim the Government’s Help to Buy: ISA bonus when you are ready to buy your first home.  Your conveyancer must be approved as an Eligible Conveyancer for the Government’s Help to Buy: ISA scheme to be able to do this.  Bonus claims will be administered by the Help to Buy: ISA scheme administrator.  At the start of the Government’s Help to Buy: ISA scheme, this will be the UKAR Corporate Services Limited (UKAR).

7.2 To claim your Help to Buy: ISA bonus, your Eligible Conveyancer must present the Closure Documentation for your Help to Buy: ISA to the Help to Buy: ISA scheme administrator with your claim application.

7.3 By applying to open your Help to Buy: ISA you agree that we can disclose relevant information about you and your Help to Buy: ISA savings to the Help to Buy: ISA scheme administrator and H M Treasury so that they can process your data in connection with the Help to Buy: ISA scheme, including processing any bonus claims you make.

8. CLOSING YOUR HELP TO BUY: ISA

8.1 You can close your Help to Buy: ISA at any time and any interest earned will be tax-free. If you have made a deposit into your Help to Buy: ISA in the same tax year as you close it, you cannot open a new cash ISA for the same tax year with us or any other provider unless that cash ISA is opened solely to pay in an additional permitted subscription following the death of your spouse or civil partner, or it is another Help to Buy: ISA and you did not receive a Help to Buy: ISA bonus, for example if your purchase of a new home did not go through. You will also be able to open a stocks and shares ISA, an innovative finance ISA, and subject to your eligibility a lifetime ISA, providing you are 18 or over and you do not save more than your annual ISA allowance.

8.2 We may close your Help to Buy: ISA if the balance falls below £1, but we will normally give you 30 days notice before doing so.

8.3 If your Help to Buy: ISA stops qualifying as an ISA we will close it and notify you. Income tax may be due on the interest earned, including any interest that has already been paid.  (You are responsible for paying any tax due to HM Revenue & Customs.)

8.4 Your Help to Buy: ISA will cease to qualify as an ISA  in the following circumstances:

(a) if any declaration you made at application is or becomes untrue;

(b) if you transfer any of your rights as an account holder or use your Help to Buy: ISA as security for a financial liability;

(c) from the date of your death; or

(d) if HM Revenue & Customs instructs us accordingly.

8.5 We will also notify you if, by reason of any failure to satisfy the provisions of the Government’s ISA rules, your Help to Buy: ISA stops qualifying as a Help to Buy: ISA but can continue to qualify as a cash ISA.  If this happens we will change your account to an easy access cash ISA we offer at the time.  This will mean the interest on your savings will continue to be tax free but you will not be able to claim any Help to Buy: ISA bonus on them.

8.6 If you die, your Help to Buy: ISA balance will normally be paid to your estate. When we receive notice of your death we will close your Help to Buy: ISA and pay any interest earned up to the date of death tax free. We will transfer the balance to a new account on which interest will be earned at the Easy Saver interest rates (or the rate paid on our equivalent instant access savings account if we no longer offer Easy Saver). Your spouse or civil partner will be entitled to an additional permitted subscription equal to the balance of your cash ISA on death (including any interest accrued at the date of your death) if they wish to save in another cash ISA.  (They will not be eligible for this additional permitted subscription if you are separated at the time of your death.)  Your spouse or civil partner will not, however, be able to claim any Help to Buy: ISA bonus from the amount you have saved.

8.7 If you close your Help to Buy: ISA and claim a Help to Buy: ISA bonus but your purchase does not go ahead, we may agree to you paying your Help to Buy: ISA savings into another Help to Buy: ISA with us.  This may have a different sort code and account number to your original account, and may not have identical terms and conditions – although we will provide you with this information, and a copy of the terms and conditions, at the time.  This must be done within 12 months of you closing your Help to Buy: ISA.  You must provide us with the appropriate Help to Buy: ISA declarations and your Purchase Failure Notice from your Eligible Conveyancer, before we can open another Help to Buy: ISA for you.

9. OTHER TERMS

9.1 We are required to provide details of all ISA holders to HM Revenue & Customs. If you are or become non-resident in the UK, HM Revenue & Customs may be required to share this information with tax authorities in your country of residence.

9.2 We will send you a statement each year showing transactions up to and including the anniversary of the date you opened your Help to Buy: ISA.   We will also send you annual information to remind you of the qualifying conditions for Help to Buy: ISAs and the Help to Buy: ISA bonus.

9.3 We will send you a duplicate statement on request. There may be a reasonable charge for this which you will be notified of at the time of your request.

9.4 We may delegate any of our functions or responsibilities to a third party. If we do so, we will first satisfy ourselves that the third party is competent to carry out those functions and responsibilities.

9.5 Any changes made by the Government to its ISA Regulations that affect these conditions will apply as soon as they come into force.

9.6 Favourable tax treatment for ISAs may not be maintained. (The Government is responsible for decisions about tax treatment.)

10. CANCELLATION

10.1 If you apply for a Help to Buy: ISA you will be able to change your mind and cancel your account at any time before the end of the 14-day period starting on the day your Help to Buy: ISA is opened or the day you receive your ISA Welcome Pack, whichever is later. If you cancel your Help to Buy: ISA you are free to subscribe to another ISA in the same tax year. If you decide to cancel we will repay you any money you have paid together with any interest due on it, or help you to switch the balance to another account. To cancel this agreement you should tell us by writing to us at Lloyds Bank plc, BX1 1LT. There are no charges for cancelling your Help to Buy: ISA agreement, and you do not have to give any advance notice.   Even if you miss the 14 day deadline, you may still close your account, as explained in your account conditions.  (If you close a cash ISA in these circumstances, you will not usually be able to open another cash ISA, either with us or another ISA provider in the same tax year although there are exceptions to this for Help to Buy: ISAs, for example if your house purchase has not gone through.)