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  • FIRST POST
    • Greveson
    • By Greveson 12th Oct 16, 4:34 PM
    • 13Posts
    • 15Thanks
    Greveson
    HTB ISA tranfer to LISA - count towards allowance?
    • #1
    • 12th Oct 16, 4:34 PM
    HTB ISA tranfer to LISA - count towards allowance? 12th Oct 16 at 4:34 PM
    Reading this article:
    http://www.moneysavingexpert.com/savings/lifetime-ISAs

    There appears to be a bit of a contradiction. In section 7 bullet point 3 it says,
    Money saved in a Help to Buy ISA after 6 April 2017 can be transferred to a LISA, but will use up your allowance for that year.
    But then underneath that (when discussing HTB ISA vs regular saver) it says,
    But once LISAs are available, if you then shift that lump sum into one, you've effectively used up much of your LISA allowance for the 2017/18 tax year. Whereas if you save in a Help to Buy ISA now, then transfer it once the 2017/18 tax year starts, that won't count towards your allowance, allowing you to save more.
    Unless I've sorely misunderstood these statements appear to contradict each other.

    So now I'm confused. In April 2017 I'll have £4,000 in my HTB ISA. If I convert that into a LISA on 7th April 2017, will I have a further £4k to save in my LISA until April 2018, or will I have used up my allowance for that year?
Page 1
    • eskbanker
    • By eskbanker 12th Oct 16, 7:37 PM
    • 3,616 Posts
    • 3,236 Thanks
    eskbanker
    • #2
    • 12th Oct 16, 7:37 PM
    • #2
    • 12th Oct 16, 7:37 PM
    No contradiction, perhaps it would be easier if the second statement was reworded to be comparable with the first:

    Money saved in a Help to Buy ISA after 6 April 2017 can be transferred to a LISA, but will use up your allowance for that year (2017/18).

    Money saved in a Help to Buy ISA before 6 April 2017 can be transferred to a LISA after 6 April 2017 and won't use up your allowance for that year (2017/18).

    Any ISA transfers (of funds from previous tax years) don't affect annual allowances for the current tax year.
    • Ed-1
    • By Ed-1 12th Oct 16, 8:33 PM
    • 1,492 Posts
    • 808 Thanks
    Ed-1
    • #3
    • 12th Oct 16, 8:33 PM
    • #3
    • 12th Oct 16, 8:33 PM
    Reading this article:
    http://www.moneysavingexpert.com/savings/lifetime-ISAs

    There appears to be a bit of a contradiction. In section 7 bullet point 3 it says,


    But then underneath that (when discussing HTB ISA vs regular saver) it says,


    Unless I've sorely misunderstood these statements appear to contradict each other.

    So now I'm confused. In April 2017 I'll have £4,000 in my HTB ISA. If I convert that into a LISA on 7th April 2017, will I have a further £4k to save in my LISA until April 2018, or will I have used up my allowance for that year?
    Originally posted by Greveson
    You're not 'converting' your Help to Buy ISA into a Lifetime ISA, you're transferring money from a H2B ISA to a LISA and what matters is when the money was paid into the H2B ISA. Money paid in before 6 April 2017 won't count towards the £4,000 LISA allowance if transferred into a LISA (using an ISA transfer). Money paid into a H2B ISA after 5 April 2017 will count towards the £4,000 LISA allowance, but you can continue paying into both a H2B ISA and a LISA after 5 April 2017 if the H2B ISA rate is decent and worth doing.
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