Count Lifetime ISAs as means-tested capital of the holder's benefit unit

changelog.d/1981.added.md

@@ -0,0 +1 @@
+- Added the Lifetime ISA holdings that microcosm datasets carry (`lifetime_isa_balance`, `has_lifetime_isa`, `household_lifetime_isa_balance`) and the Lifetime ISA withdrawal-charge parameters. Universal Credit, Housing Benefit, Income Support, income-based JSA, income-related ESA and Pension Credit now count a Lifetime ISA at its surrender value (75% of the balance under 60, the whole balance from 60) as capital of the holder's own benefit unit when the holder is its claimant or partner, and not before the Lifetime ISA existed (6 April 2017). Datasets without the columns are unaffected.

docs/book/assumptions/growthfactors.md

@@ -60,7 +60,7 @@ We derive these rates from OBR GDP growth and ONS population projections.
 |-------------|------|------|------|------|------|------|------|------|
 | Growth rate | 9.2% | 5.0% | 3.8% | 2.8% | 2.8% | 3.1% | 3.3% | 3.3% |
 
-We use per capita GDP for these variables: `capital_gains`, `capital_gains_badr`, `capital_gains_before_response`, `capital_gains_carried_interest`, `capital_gains_residential_property`, `corporate_wealth`, `dividend_income`, `gross_financial_wealth`, `lump_sum_income`, `main_residence_value`, `maintenance_income`, `miscellaneous_income`, `mortgage_capital_repayment`, `net_financial_wealth`, `non_residential_property_value`, `other_investment_income`, `other_residential_property_value`, `owned_land`, `pension_income`, `private_pension_wealth`, `private_transfer_income`, `property_income`, `savings`, `savings_interest_income`, `sublet_income`
+We use per capita GDP for these variables: `capital_gains`, `capital_gains_badr`, `capital_gains_before_response`, `capital_gains_carried_interest`, `capital_gains_residential_property`, `corporate_wealth`, `dividend_income`, `gross_financial_wealth`, `household_lifetime_isa_balance`, `lifetime_isa_balance`, `lump_sum_income`, `main_residence_value`, `maintenance_income`, `miscellaneous_income`, `mortgage_capital_repayment`, `net_financial_wealth`, `non_residential_property_value`, `other_investment_income`, `other_residential_property_value`, `owned_land`, `pension_income`, `private_pension_wealth`, `private_transfer_income`, `property_income`, `savings`, `savings_interest_income`, `sublet_income`
 
 ## Council tax
 

policyengine_uk/data/uprating_indices.yaml

@@ -86,6 +86,8 @@ gov.economic_assumptions.yoy_growth.obr.per_capita.gdp:
 - corporate_wealth
 - dividend_income
 - gross_financial_wealth
+- household_lifetime_isa_balance
+- lifetime_isa_balance
 - lump_sum_income
 - main_residence_value
 - maintenance_income

policyengine_uk/parameters/gov/dwp/ESA/income/capital/person_sources.yaml

@@ -0,0 +1,26 @@
+description: >
+  Person-level model variables counted as income-related Employment and
+  Support Allowance capital of the person's own benefit unit. They are summed
+  over the benefit unit's claimant and partner (`is_uc_claimant`), so they
+  need none of the household proxy that the household `sources` use, and a
+  dependant's holding is left out: regulation 83 adds only the partner's
+  capital to the claimant's. `lifetime_isa_countable_capital` is a Lifetime
+  ISA at its surrender value: regulation 113 values capital at its current
+  market or surrender value, and DMG 52665 counts a Lifetime ISA at 75% of its
+  value under 60 and in full from 60. Lifetime ISAs exist from 6 April 2017,
+  and the list is empty before then.
+metadata:
+  label: Income-related ESA person-level capital sources
+  period: year
+  unit: list
+  reference:
+    - title: The Employment and Support Allowance Regulations 2008 reg. 83
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/83
+    - title: The Employment and Support Allowance Regulations 2008 reg. 113
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/113
+    - title: Decision Makers' Guide, Chapter 52 (Capital), para. 52665
+      href: https://assets.publishing.service.gov.uk/media/69d8f30ad3e08b8871b665ac/dmg-Ch-52.pdf
+values:
+  2008-10-27: []
+  2017-04-06:
+    - lifetime_isa_countable_capital

policyengine_uk/parameters/gov/dwp/JSA/income/capital/person_sources.yaml

@@ -0,0 +1,27 @@
+description: >
+  Person-level model variables counted as income-based Jobseeker's Allowance
+  capital of the person's own benefit unit. They are summed over the benefit
+  unit's claimant and partner (`is_uc_claimant`), so they need none of the
+  household proxy that the household `sources` use, and a dependant's holding
+  is left out: regulation 109 kept a child's or young person's capital out of
+  the claimant's, and since children moved to child tax credit they are
+  outside the assessment altogether. `lifetime_isa_countable_capital` is a
+  Lifetime ISA at its surrender value: regulation 111 values capital at its
+  current market or surrender value, and DMG 29665 counts a Lifetime ISA at
+  75% of its value under 60 and in full from 60. Lifetime ISAs exist from 6
+  April 2017, and the list is empty before then.
+metadata:
+  label: Income-based JSA person-level capital sources
+  period: year
+  unit: list
+  reference:
+    - title: The Jobseeker's Allowance Regulations 1996 reg. 109
+      href: https://www.legislation.gov.uk/uksi/1996/207/regulation/109
+    - title: The Jobseeker's Allowance Regulations 1996 reg. 111
+      href: https://www.legislation.gov.uk/uksi/1996/207/regulation/111
+    - title: Decision Makers' Guide, Chapter 29 (Capital), para. 29665
+      href: https://assets.publishing.service.gov.uk/media/6894a69d3080e72710b2e237/dmg-ch-29.pdf
+values:
+  1996-10-07: []
+  2017-04-06:
+    - lifetime_isa_countable_capital

policyengine_uk/parameters/gov/dwp/housing_benefit/means_test/capital/person_sources.yaml

@@ -0,0 +1,29 @@
+description: >
+  Person-level model variables counted as Housing Benefit capital of the
+  person's own benefit unit. They are summed over the benefit unit's claimant
+  and partner (`is_uc_claimant`), so they need none of the household proxy
+  that the household `sources` use, and a dependant's holding is left out:
+  regulation 45 says the capital of a child or young person in the claimant's
+  family is not the claimant's. `lifetime_isa_countable_capital` is a
+  Lifetime ISA at its surrender value: regulation 47 (regulation 45 of the
+  pension-age regulations) values capital at its current market or surrender
+  value, in the words of the DWP benefits' regulations, for which DWP guidance
+  counts a Lifetime ISA at 75% of its value under 60 and in full from 60.
+  Lifetime ISAs exist from 6 April 2017, and the list is empty before then.
+metadata:
+  label: Housing Benefit person-level capital sources
+  period: year
+  unit: list
+  reference:
+    - title: The Housing Benefit Regulations 2006 reg. 45
+      href: https://www.legislation.gov.uk/uksi/2006/213/regulation/45
+    - title: The Housing Benefit Regulations 2006 reg. 47
+      href: https://www.legislation.gov.uk/uksi/2006/213/regulation/47
+    - title: The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 reg. 45
+      href: https://www.legislation.gov.uk/uksi/2006/214/regulation/45
+    - title: Decision Makers' Guide, Chapter 29 (Capital), para. 29665 (Income Support and JSA, whose valuation rule has the same words)
+      href: https://assets.publishing.service.gov.uk/media/6894a69d3080e72710b2e237/dmg-ch-29.pdf
+values:
+  2006-04-10: []
+  2017-04-06:
+    - lifetime_isa_countable_capital

policyengine_uk/parameters/gov/dwp/income_support/means_test/capital/person_sources.yaml

@@ -0,0 +1,27 @@
+description: >
+  Person-level model variables counted as Income Support capital of the
+  person's own benefit unit. They are summed over the benefit unit's claimant
+  and partner (`is_uc_claimant`), so they need none of the household proxy
+  that the household `sources` use, and a dependant's holding is left out:
+  regulation 47 kept a child's or young person's capital out of the
+  claimant's, and since children moved to child tax credit they are outside
+  the assessment altogether. `lifetime_isa_countable_capital` is a Lifetime
+  ISA at its surrender value: regulation 49 values capital at its current
+  market or surrender value, and DMG 29665 counts a Lifetime ISA at 75% of its
+  value under 60 and in full from 60. Lifetime ISAs exist from 6 April 2017,
+  and the list is empty before then.
+metadata:
+  label: Income Support person-level capital sources
+  period: year
+  unit: list
+  reference:
+    - title: The Income Support (General) Regulations 1987 reg. 47
+      href: https://www.legislation.gov.uk/uksi/1987/1967/regulation/47
+    - title: The Income Support (General) Regulations 1987 reg. 49
+      href: https://www.legislation.gov.uk/uksi/1987/1967/regulation/49
+    - title: Decision Makers' Guide, Chapter 29 (Capital), para. 29665
+      href: https://assets.publishing.service.gov.uk/media/6894a69d3080e72710b2e237/dmg-ch-29.pdf
+values:
+  2010-01-01: []
+  2017-04-06:
+    - lifetime_isa_countable_capital

policyengine_uk/parameters/gov/dwp/pension_credit/income/capital/person_sources.yaml

@@ -0,0 +1,27 @@
+description: >
+  Person-level model variables counted as Pension Credit capital of the
+  person's own benefit unit. They are summed over the benefit unit's claimant
+  and partner (`is_uc_claimant`), so they need none of the household proxy
+  that the household `sources` use, and a dependant's holding is left out:
+  section 5 of the State Pension Credit Act 2002 adds only the partner's
+  capital to the claimant's. `lifetime_isa_countable_capital` is a Lifetime
+  ISA at its surrender value: regulation 19 values capital at its current
+  market or surrender value, and DMG 84751 counts a Lifetime ISA at 75% of its
+  value under 60 and in full from 60, so a claimant's own Lifetime ISA counts
+  in full. Lifetime ISAs exist from 6 April 2017, and the list is empty before
+  then.
+metadata:
+  label: Pension Credit person-level capital sources
+  period: year
+  unit: list
+  reference:
+    - title: State Pension Credit Act 2002 s. 5
+      href: https://www.legislation.gov.uk/ukpga/2002/16/section/5
+    - title: The State Pension Credit Regulations 2002 reg. 19
+      href: https://www.legislation.gov.uk/uksi/2002/1792/regulation/19
+    - title: Decision Makers' Guide, Chapter 84 (Deemed weekly income from capital), para. 84751
+      href: https://assets.publishing.service.gov.uk/media/69d8f133daa863aa5db665a5/dmg-Ch-84.pdf
+values:
+  2003-10-06: []
+  2017-04-06:
+    - lifetime_isa_countable_capital

policyengine_uk/parameters/gov/dwp/universal_credit/means_test/capital/person_sources.yaml

@@ -0,0 +1,26 @@
+description: >
+  Person-level model variables counted as Universal Credit capital of the
+  person's own benefit unit. They are summed over the benefit unit's claimant
+  and partner (`is_uc_claimant`), so they need none of the household proxy
+  that the household `sources` use, and a dependant's holding is left out:
+  section 5 of the Welfare Reform Act 2012 tests the claimant's, or the joint
+  claimants' combined, capital. `lifetime_isa_countable_capital` is a
+  Lifetime ISA at its surrender value: regulation 49(1) values capital at its
+  current market or surrender value, and ADM H1659 counts a Lifetime ISA at
+  75% of its value under 60 and in full from 60. Lifetime ISAs exist from 6
+  April 2017, and the list is empty before then.
+metadata:
+  label: Universal Credit person-level capital sources
+  period: year
+  unit: list
+  reference:
+    - title: Welfare Reform Act 2012 s. 5
+      href: https://www.legislation.gov.uk/ukpga/2012/5/section/5
+    - title: The Universal Credit Regulations 2013 reg. 49(1)
+      href: https://www.legislation.gov.uk/uksi/2013/376/regulation/49/1
+    - title: Advice for Decision Making, Chapter H1 (Capital), para. H1659
+      href: https://assets.publishing.service.gov.uk/media/693ace15c72b0f8ccf33d609/adm-ch-H1.pdf
+values:
+  2013-04-29: []
+  2017-04-06:
+    - lifetime_isa_countable_capital

policyengine_uk/parameters/gov/hmrc/isa/README.md

@@ -0,0 +1 @@
+# Individual Savings Accounts

policyengine_uk/parameters/gov/hmrc/isa/lifetime/README.md

@@ -0,0 +1 @@
+# Lifetime ISA

policyengine_uk/parameters/gov/hmrc/isa/lifetime/charge_free_age.yaml

@@ -0,0 +1,11 @@
+description: >
+  Age from which withdrawals from a Lifetime ISA carry no withdrawal charge.
+values:
+  2017-04-06: 60
+metadata:
+  label: Lifetime ISA charge-free age
+  period: year
+  unit: year
+  reference:
+    - title: The Individual Savings Account Regulations 1998, Schedule paragraph 4(1)
+      href: https://www.legislation.gov.uk/uksi/1998/1870/schedule/paragraph/4

policyengine_uk/parameters/gov/hmrc/isa/lifetime/withdrawal_charge.yaml

@@ -0,0 +1,19 @@
+description: >
+  Share of the amount withdrawn from a Lifetime ISA that is charged when the
+  withdrawal is not exempt, that is, when it is made before the charge-free age
+  and not towards a first home or with a terminal illness.
+values:
+  2017-04-06: 0.25
+  2020-03-06: 0.2
+  2021-04-06: 0.25
+metadata:
+  label: Lifetime ISA withdrawal charge
+  period: year
+  unit: /1
+  reference:
+    - title: The Individual Savings Account Regulations 1998, Schedule paragraph 5
+      href: https://www.legislation.gov.uk/uksi/1998/1870/schedule/paragraph/5
+    - title: The Individual Savings Account Regulations 1998, Schedule paragraph 5A (20% from 6 March 2020 to 5 April 2021)
+      href: https://www.legislation.gov.uk/uksi/1998/1870/schedule/paragraph/5A
+    - title: The Individual Savings Account (Amendment No. 3) (Coronavirus) Regulations 2020
+      href: https://www.legislation.gov.uk/uksi/2020/506/made