H2B ISA > LISA Transfer and Allowance

kingaliababa · 22 November 2017 at 12:25PM

Hi,

I'm trying to get my ducks in a row ahead of the deadline on 05/04/18 to transfer any H2B ISA savings into a Lifetime ISA.

What I'm struggling to understand is how much is transferrable under each of the financial year's I've saved, and how much allowance I will have remaining for 18-19, if any.

I can't attach a file to show this unfortunately, and any spreadsheet paste messes up the layout to make no sense.

Essentially:
H2B opened March 2016. Maximum £200 put in each month.
Lifetime ISA opened June 2017. Minimum £1 deposited to get clock ticking.

H2B March 2016 to March 2016 = £3400
H2B April 2016 to end March 2017 = £2400
Expected H2B by end March 2018 = £2400
Additional Cash Savings (saved in current accounts) predicted by April 2018 = £2,850.

any help appreciated!

xylophone · 22 November 2017 at 12:32PM

https://www.moneysavingexpert.com/savings/lifetime-ISAs

kingaliababa · 22 November 2017 at 1:04PM

Hi, yes I've already seen that thanks but the specific amounts in each FY I'm not clear on based on my timeline and monies

eskbanker · 22 November 2017 at 2:48PM

kingaliababa wrote: »

H2B March 2016 to March 2016 = £3400

This can't be right - you can only pay £200 per month in, plus an extra £1,000 in the first month, so you can't have paid £3400 into a HTB ISA in one month!

kingaliababa wrote: »

H2B April 2016 to end March 2017 = £2400

This can be transferred to a LISA without affecting your annual LISA allowance.

kingaliababa wrote: »

Expected H2B by end March 2018 = £2400
Additional Cash Savings (saved in current accounts) predicted by April 2018 = £2,850.

You can pay up to £4K of this £5,250 into a LISA on or by 5 April 2018 and then another £4K allowance starts the next day.

What interest have you received?

kingaliababa · 22 November 2017 at 3:19PM

Correct! Well spotted, apologies I posted the message in haste

H2B ISA March '16 to March '17 = £3400.

The only interest I've received was in April 2017 for my H2B ISA. This looks like I will miss the next interest payment (@ 3.5%) if I transfer my total H2B funds into my LISA (by another provider) before April 2018.

So I will have £1,250 ready to place in my LISA for 18-19, leaving £2,750 for the rest of the year.

kingaliababa · 22 November 2017 at 3:23PM

So I can place all of my H2B funds into my LISA, even though it crosses more than one financial year (16-17 & 17-18)?

eskbanker · 23 November 2017 at 1:36AM

kingaliababa wrote: »

The only interest I've received was in April 2017 for my H2B ISA.

As most of that interest will have been earned in 2016/17 (even though it was paid in 2017/18), you should be able to pay that proportion (say 11/12ths) into your LISA without it counting towards your 2017/18 £4K LISA allowance.

kingaliababa wrote: »

This looks like I will miss the next interest payment (@ 3.5%) if I transfer my total H2B funds into my LISA (by another provider) before April 2018.

Your HTB provider will pay you pro rata interest as at the date of transfer.

kingaliababa · 23 November 2017 at 9:25AM

thanks very much this gives me better insight.

Will look to transfer in March and start the ball rolling on the LISA.

Free money so want to maximise it!

H2B ISA > LISA Transfer and Allowance

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