H2B ISA / LISA Queries
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Halftimeoranges
Posts: 27 Forumite
Hey,
So, I currently have a H2B ISA with Halifax that I was using throughout the 16/17 tax year and have continued to transfer the maximum of £200 per month so far this year, with the plan of moving it all into a LISA at the year end and topping it up to the maximum contributions. However while waiting for some options to open up I missed the deadline on the only cash one available so I'm wondering what my options are and if the one I have outlined below are feasible/legal.
Preferably I'd like to open up a S&S LISA and transfer the full balance of my H2B account into it, top it up with ~£1,600 after the 12 monthly transfers I've already made and then transfer the full balance into a cash LISA at the start of the 18/19 tax year. I don't wait to retain my savings in a stocks and shares account for longer than absolutely necessary. If this is possible I will certainly do this and I can't see any restrictions that would prevent it so am I missing anything?
The previous guide from this site says you can only transfer H2B balances into the LISA for the first year so I'm at a bit of a loss as to what other options are to retain the maximum benefits from my H2B contributions to date.
"You can transfer a Help to Buy ISA into a LISA until the end of the LISA!!!8217;s first year (so 5 April 2018)." - blog.moneysavingexpert.com/2016/07/25/24984
Thanks in advance for any help
So, I currently have a H2B ISA with Halifax that I was using throughout the 16/17 tax year and have continued to transfer the maximum of £200 per month so far this year, with the plan of moving it all into a LISA at the year end and topping it up to the maximum contributions. However while waiting for some options to open up I missed the deadline on the only cash one available so I'm wondering what my options are and if the one I have outlined below are feasible/legal.
Preferably I'd like to open up a S&S LISA and transfer the full balance of my H2B account into it, top it up with ~£1,600 after the 12 monthly transfers I've already made and then transfer the full balance into a cash LISA at the start of the 18/19 tax year. I don't wait to retain my savings in a stocks and shares account for longer than absolutely necessary. If this is possible I will certainly do this and I can't see any restrictions that would prevent it so am I missing anything?
The previous guide from this site says you can only transfer H2B balances into the LISA for the first year so I'm at a bit of a loss as to what other options are to retain the maximum benefits from my H2B contributions to date.
"You can transfer a Help to Buy ISA into a LISA until the end of the LISA!!!8217;s first year (so 5 April 2018)." - blog.moneysavingexpert.com/2016/07/25/24984
Thanks in advance for any help
0
Comments
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You can transfer a HTB into a LISA at any time but if you wished to do so while taking advantage of the one-off concession that pre-17/18 HTB contributions don't count towards your annual £4K LISA allowance, then that needed to be done before the expiry of that arrangement at the end of this tax year.
As you say, you've missed the boat for Skipton but may be able to transfer into a S&S LISA as a temporary stepping stone to reverting to cash next tax year - however, it may not be possible to achieve this before the end of the tax year now....
Note that if you do succeed in transferring before year-end, this tax year's HTB interest counts towards the LISA allowance, so after transferring it would be less than £1600 of headroom left for 17/18 LISA contributions.0 -
I!!!8217;m in exactly the same situation. Did you find that it was possible to put the htb into stocks and shares LISA? Thanks0
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Yes it is possible but unlikely to complete in time now.0
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