Transferring a split Help to Buy ISA into a LISA

haza_baza · 17 February 2018 at 12:53PM

Hi, I am looking for some advice.

Is it still possible to switch a H2B ISA to a LISA beforore before 5th April 2018 (using the scenario below)?

I opened a split H2B ISA and cash ISA with Aldermore in 2016/17. I now have £5,600 (+interest) in the H2B ISA. I also have the split cash ISA running alongside it and put my remaining yearly allowance of £17,600 (20,000 - 12x200 H2B deposits) in there at the start of the tax year. This was in an attempt to max out my full allowance.

Will having this split H2B ISA complicate matters if I wish to switch to a LISA this tax year?
Especially now my £20,000 yearly ISA allowance will be maxed out come the final (12th) £200 deposit into my H2B in March? I can't find any threads that cover this scenario so would be really grateful for some advice!

Thanks

Alexland · 17 February 2018 at 2:08PM

Yes I believe it will be a problem as if transfering current year ISA contribution into another type of ISA they need to be transferred in full and you obviously cannot transfer £20k from the current year Split Cash ISA into a LISA.

Check with Aldermore but I don't think they would allow you to transfer your current year HTB ISA contributions out to a the LISA unless you withdrew the excess first.

You could certainly transfer your previous year HTB ISA balance at 5th April into a LISA and then continue to contribute next tax year if this is of interest to you?

Alex

Transferring a split Help to Buy ISA into a LISA

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free