H2B ISA v LISA 5th April Deadline

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Hi,


I have one of the Aldermore H2B ISAs which allows me to save £200 per month in the H2B but to also use the rest of my allowance in their std ISA.


I have just read about transferring my H2B to the LISA before the end of the tax year.


The reason I am thinking to do this, is house prices are likely to be over £250K in my area so I wont be able to use the H2B bonus.


Am I right to assume I can't transfer my H2B before the end of the tax year to the LISA because I also hold the other ISA account (which I have maxed out this year).


If not, that's fine, but I am also looking for a bit of advice for next tax year. Is the LISA the way forward for me?


As always, help and advice is much appreciated. thanks in advance.

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  • Alexland
    Alexland Posts: 9,665 Forumite
    First Anniversary Photogenic Name Dropper First Post
    edited 15 March 2018 at 5:56PM
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    Yes if you have a Split Cash ISA then the whole current year contributions (to both the Cash and HTB parts) would need transferring which if it totals £20k contributions this tax year would breach the £4k LISA limit. In theory you could withdraw enough and then make the transfer but it's pretty much to late now.

    Maybe open up a new LISA next tax year in a few weeks time and deposit £4k? We are not allowed to advise you on product suitability so read the LISA features for yourself and decide.
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