Transfer HTB > new LISA & use HTB bonus this year?

On the MSE LISA page, on the section about HTB to LISA transfers it says:
In fact, you'll still be eligible to claim the bonus on the Help to Buy ISA part, as provided you transferred it into a LISA (as opposed to shutting the account), you have a one-off 12-month window to use your Help to Buy ISA closure documents !!!8211; the provider will give you these when you transfer !!!8211; for your conveyancer to claim the Help to Buy ISA bonus.

I'm interpreting this to mean:
  1. I have, say, £4K in my HTB (so currently eligible for a 1K bonus)
  2. I transfer the HTB into a new LISA this month
  3. I buy a house in 6 months time
  4. I can get the £1K HTB bonus

Is that right? I can't find any other reference to this, apart from on the MSE site.

If the above is correct, can I keep the LISA as pension savings and still get the govt bonus when I'm 60? Will there be any penalties?

Thanks!

Comments

  • Alexland
    Alexland Posts: 9,652
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    Well it's certainly not in the spirit of the rules but I agree it looks possible. You would get a HTB closure statement as a result of the LISA transfer (this has been confusing a few posters) which your solicitor could use for 12 months to draw the HTB bonus for your property.

    Meanwhile in your, presumably S&S, LISA you would get a 25% bonus added in April/May based on your HTB ISA transfer and you can start drawing upon those investments at 60 without penalty.

    Sneaky,
    Alex
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