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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
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    MSE Helen Saxon
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 5:06 PM
    Lifetime ISAs guide 16th Mar 16 at 5:06 PM
    Hi!

    This is the discussion thread for the



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    Thanks folks,
Page 33
    • greenglide
    • By greenglide 27th May 17, 2:02 PM
    • 2,637 Posts
    • 1,658 Thanks
    greenglide
    Yes.

    You get the HTB bonus only when you buy a house. You haven't done that so you haven't got the bonus.

    When you transfer to LISA in 2017/2018 you haven't got the bonus from the HTB or the LISA but you get the bonus for both at the start of 2018/2019.
    Last edited by greenglide; Yesterday at 2:03 PM. Reason: typo
    • Frankie17
    • By Frankie17 28th May 17, 10:17 AM
    • 2 Posts
    • 0 Thanks
    Frankie17
    Hi all,

    A question on holding a Help To Buy ISA and a LISA at the same time. Apologies if this has already been covered somewhere...

    I already have a Help To Buy ISA with a bank. I'm aware that I can hold both a HTB ISA and LISA, but that there might be some restrictions to the amounts held in total (I'm also aware that a the government bonus can only be claimed on one of them).

    In this tax year, I've already paid 3 x £200 in to my HTB ISA, so does this amount get deducted from the cap on the LISA? Therefore meaning I could pay a maximum of £3,400 in to a LISA before the next tax year?

    Also, assuming I transfer a portion of the HTB ISA in to a LISA, then add some other funds to make up the permitted £4,000 per year in the LISA, what happens to the remainder of the HTB ISA? Can I leave the remaining funds there to collect interest, or so I have to close the HTB ISA and do something else with the money that's in it?

    Thanks for your help.
    • eskbanker
    • By eskbanker 28th May 17, 11:13 AM
    • 4,476 Posts
    • 4,220 Thanks
    eskbanker
    2017/18 HTB contributions are only counted against your LISA allowance if you transfer them into the LISA, so in theory you could pay £2,400 into HTB and £4K into LISA this tax year if you choose not to consolidate.

    However, as you know, you can only receive the 25% bonus on one, so the usual recommendation is to transfer your entire HTB into a LISA (as prior year HTB contributions are over and above the £4K LISA cap), towards the end of this tax year, opening a LISA as early as possible to start the 12-month clock ticking. This makes best use of pre 17/18 HTB contributions although I'm not aware of any reason you couldn't leave them there.

    When would you be looking to buy?
    • Frankie17
    • By Frankie17 28th May 17, 11:57 AM
    • 2 Posts
    • 0 Thanks
    Frankie17
    Looking to buy towards the end of 2018 / early 2019.

    So if my understanding is correct:

    My HTB contribution in the 16/17 tax year was 2.4k. I could transfer all of this in to a LISA, plus an additional 4k for 17/18 tax year, and then receive the LISA bonus on the whole lot, so 1.6k bonus.

    I could then leave the 17/18 HTB contributions (2 x 200) where they are, continue contribution 200 / month to take advantage of the okay interest rate.

    Then when it comes to buying a place, use the LISA, and then have the HTB account as a cash pot with no bonus attached.

    Have I got that right?

    EDIT: Or, would I able to transfer in 4k from the HTB for the 16/17 year, then add another 4k for this year?
    Last edited by Frankie17; Today at 12:09 PM.
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