Nationwide H2B transfer to Skipton LISA
chilledheat
Posts: 2 Newbie
Hey all,
Long time lurker, first time poster. A big thanks to everyone that has contributed in the past, this place has been a wealth of knowledge for myself and siblings which is greatly appreciated! :T
However, it's now my turn to need some clarity from someone savvy or who has experienced this if possible.
I have a Nationwide Flexclusive ISA and Help to Buy ISA but need to get the Help to Buy into Skipton's cash LISA sharpish! These ISA's are linked at Nationwide under the same wrapper, so they both contribute to that years allowance. Let's say there is £20,000 in the ISA and £3,000 in the Help to Buy. There are contributions to both for 2017/18 but I can remove them from the ISA.
These accounts can't be split at Nationwide, so to get the Help to Buy out, the Flexclusive ISA in this instance has to leave too...
My concern is, if I do an ISA transfer to Skipton, these accounts will leave Nationwide as a single ISA, Skipton will receive all this into the new ISA product I'll open and then anything transferred into the LISA will be counted as this years contributions (2017/18) rather than have previous years contributions be exempt - I've had this account for 2 years or so.
Essentially, I need ensure the Help to Buy account gets into the LISA unscathed so previous years contributions do no affect this years contributions.
Any and all help is greatly welcomed!
Long time lurker, first time poster. A big thanks to everyone that has contributed in the past, this place has been a wealth of knowledge for myself and siblings which is greatly appreciated! :T
However, it's now my turn to need some clarity from someone savvy or who has experienced this if possible.
I have a Nationwide Flexclusive ISA and Help to Buy ISA but need to get the Help to Buy into Skipton's cash LISA sharpish! These ISA's are linked at Nationwide under the same wrapper, so they both contribute to that years allowance. Let's say there is £20,000 in the ISA and £3,000 in the Help to Buy. There are contributions to both for 2017/18 but I can remove them from the ISA.
These accounts can't be split at Nationwide, so to get the Help to Buy out, the Flexclusive ISA in this instance has to leave too...
My concern is, if I do an ISA transfer to Skipton, these accounts will leave Nationwide as a single ISA, Skipton will receive all this into the new ISA product I'll open and then anything transferred into the LISA will be counted as this years contributions (2017/18) rather than have previous years contributions be exempt - I've had this account for 2 years or so.
Essentially, I need ensure the Help to Buy account gets into the LISA unscathed so previous years contributions do no affect this years contributions.
Any and all help is greatly welcomed!
0
Comments
-
Firstly I believe you are describing one Split Cash ISA with 2 parts.
It's not clear how much of the £20k you have contributed during this tax year to the Flexclusive part of the Split Cash ISA?
The problem you may hit is that under the HMRC rules you must transfer all current year Cash ISA contributions. You are not allowed to put some in the LISA and some in a different ISA as these are not available as a Split product as they are fundamentally different types of ISA.
You can do what you want with transfering parts of previous year contributions to new providers. Although you only have a few days to ask for any previous year HTB contributions to be transfered into a LISA with Skipton.
Alex0 -
Thanks for the reply, Alex.
In the Flexclusive ISA, whilst there are currently contributions for this tax year, I can remove them so that they don't exist in that ISA so that won't be a problem. Only the Help to Buy ISA will have contributions for this year.
So it would appear I can't do what I'd like to but rather will need to take a different approach...
So I can transfer previous years contributions from Nationwides Help to Buy to Skipton's LISA? That would mean that transfer won't impact this years contributions, leaving £4000 available for this year LISA and would also leave the Flexclusive ISA and Help to Buy ISA active, but with the latter now with only this years contributions in it?0 -
Yes if you act quickly in the next few days I believe you can initiate a transfer of only the HTB ISA part balance at 5th April 2017 into Skipton then add £4k for this tax year before 5th April 2018 as long as it wouldn't cause you to exceed £20k contributions across all your ISAs this tax year.
You can keep the HTB ISA part with Nationwide containing only the current year contributions and continue to contribute to it if you want the higher interest but you would need to close it when you have purchased a property with the LISA and are no longer eligible to hold the HTB account.
Alex0 -
According to the gov.uk site:
There are 4 types of Individual Savings Accounts (ISA):
cash ISA
stocks and shares ISA
innovative finance ISA
Lifetime ISA
You can save up to £20,000 in one type of account or split the allowance across some or all of the other types.
You can only pay £4,000 into your Lifetime ISA in a tax year.
You could save £11,000 in a cash ISA, £2,000 in a stocks and shares ISA, £3,000 in an innovative finance ISA and £4,000 in a Lifetime ISA in one tax year.
https://www.gov.uk/individual-savings-accounts/how-isas-work
So while you can't have put money in Cash ISA with one provider and a Help2Buy with another in the same financial year, it doesn't sound like the same restriction applies for Cash ISA and Lifetime ISAs.0 -
Yes but the OP's problem is that having already contributed more than £4k into the Split Cash ISA this tax year they would need to move it in whole to another ISA as you are not allowed to split a current year ISA - but they would be over the limit to move the current year contributions in whole to a LISA.
So the options would be to either remove some of the Flexclusive part contributions (to get the total contributions across both parts down to £4k) or move only the previous year HTB ISA balance and add £4k to the LISA.0
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