Help needed - paid into a HTB ISA and LISA in the same tax year

heavingbeasts · 5 September 2017 at 4:13PM

Hi

I have had a Help to Buy cash ISA open with Halifax since 2016 and have been paying in the maximum each month.

I have also just opened up a cash Lifetime ISA with Skipton and transferred in £1 in order to 'start the clock' on the 1-year time limit before you can use your LISA funds towards a house (as it looks like I won't be buying a house before September 2018).

My query is, as I have been paying in £200 monthly to my HTB ISA and have now paid in £1 to my LISA, haven't I paid into 2 different cash ISAs in the same tax year which is against the rules?

If so, what should I do about it? Contact Skipton and ask them to close my LISA account? I'm worried about losing my 25% government bonus when it comes to buying a house as I've paid into 2 separate cash ISAs.

Any help appreciated!

eskbanker · 5 September 2017 at 4:18PM

A LISA is a different type of ISA from a cash one (which includes HTB) and therefore, as the rule involves not paying new money into more than one ISA of the same type in any given tax year, you're OK.

The official scheme rules state:

The ‘one ISA of each type per tax year’ rule

3.14 From 6 April 2017 investors can subscribe in each tax year to

 one cash ISA

 one stocks and shares ISA,

 one innovative finance ISA, and

 one Lifetime ISA.

They cannot subscribe to two (or more) cash ISAs, two (or more) stocks and shares ISAs, two (or more) innovative finance ISAs, or two or more Lifetime ISAs in the same tax year.

heavingbeasts · 5 September 2017 at 4:22PM

Ok, that puts my mind at ease. Thank you!

Help needed - paid into a HTB ISA and LISA in the same tax year

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