Legislation governing the treatment of the government bonus was enacted in the Savings (Government Contributions) Act 2017, which received Royal assent on 16 January 2017. It provides that, where a ‘qualifying addition’ to a ‘Lifetime ISA’ in a ‘relevant period’, HMRC must pay a government bonus. All of the terms used are specified in regulations (SI 1998/1870 as amended by SI 2017/466), and the power to make such regulations is exercisable by statutory instrument (Savings (Government Contributions) Act 2017, s. 1(1)-(3), s. 5). The government bonus will not give rise to any income tax liability (ITTOIA 2005, s. 775A).
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