AJ Bell launches Lifetime ISA for financial advisers

AJ Bell has launched a stocks and shares Lifetime ISA (LISA) for clients of financial advisers via the AJ Bell Investcentre platform. AJ Bell is only the second adviser platform to offer a LISA.
12 June 2018

The AJ Bell Investcentre LISA offers advisers and their clients access to the platforms’ full range of investments, which includes over 4,000 clean share classes, as well as the popular AJ Bell passive fund range and the platform’s Managed Portfolio Service (MPS), which offers both passive and actively managed portfolios.

AJ Bell’s regular investment service is also available via the new LISA, allowing advisers to regularly invest on behalf of their clients on a monthly basis, without incurring any dealing charges.

There is no set up charge for the LISA and there is a tiered annual custody charge based on fund size across all accounts held on the platform including SIPP, other ISAs and general investment accounts:

  • 0.20% for assets up to £1m

  • 0.15% between £1m and £1.5m

  • 0.10% between £1.5m and £2m

  • 0.00% above £2m.

Online dealing ranges from £0.00 for regular investments to £3.95 for one off trades.

The LISA offers a 25% Government bonus up to a maximum investment of £4,000, which will be paid monthly via the AJ Bell LISA.

A £5,000 LISA investment held in AJ Bell’s Passive Balanced fund would cost £33.50 a year (0.20% for the platform, 0.47% for the fund = 0.67% of £5,000 = £33.50).  For 2018, AJ Bell is waiving its platform fee for investments into its passive funds, making the cost this year £23.50.

Andy Bell, CEO of AJ Bell comments:

“Advisers have indicated to us that there is demand for Lifetime ISAs from some of their clients and so we are adding it to the platform for them.  Our aim is to make investing easy for advisers and their clients and having the full range of investment accounts available via our platform enables them to maximise the tax efficiency of their portfolios in one place.”

The Lifetime ISA

Lifetime ISAs are available to investors aged 19-39. Investors can continue subscribing into their LISA until the day before their 50th birthday. The maximum subscription to a LISA is £4,000 per tax year, which counts against the overall ISA subscription limit for the year.

Withdrawals can be made tax-free to purchase a first home or after age 60 to fund retirement. It is also possible to access the LISA tax-free if the investor is terminally ill. Withdrawals for any other reason will incur a 25% penalty charge.

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