Help to Buy ISA guide

masonic

PaulJA wrote: »

I've looked on the government site and it says all the bonus must be used for the deposit - but no mention that all your savings has to be?

Can anyone shed any more light?

As you might expect, the Government site is correct, the requirement is that the whole bonus must be used for the deposit. There is no requirement to use the whole balance of the HTB ISA.

Freda_Fly

As a forum newbie, I'm sorry if this has been addressed elsewhere, but I've been unable to find the answer to my query.
I hold cash ISAs from previous tax years but not 2019 - 20 as yet.
If I were to open a Help to Buy ISA soon, before they close in November 2019, and continued to pay in monthly for the next few years to maximise the government bonus, would that stop me from opening a traditional cash ISA next tax year? If so, it would mean foregoing £17,600 worth of tax free savings, so bad idea - is this the case please? I've read about split ISAs but the rates aren't very good. The HMRC savings helpline couldn't give me a sensible answer! Help please!
Thank you.

Alexland

Yes unless you have both accounts with a Split Cash ISA provider then by contributing into a HTB Cash ISA it would prohibit you from contributing into another Cash ISA during the same tax year.

You could still use your remaining ISA allowance on a S&S ISA, Lifetime ISA or Innovative Finance (P2P) ISA.

There is a trick with some providers where you could contribute into a S&S ISA, not invest the money, then transfer the ISA into a Cash ISA at the start of the next tax year.

Alex

Freda_Fly

Thanks Alex for your prompt reply - it was really helpful and gives me food for thought. I am surprised this pitfall isn't highlighted more in the HTB literature.

in_spired2

Hi, I suspect the answer is "no" and if there's uncertainty I'll ask in branch but...

I have a Nationwide HTB and a STB. My STB will be closing in Mar 2020 and I will need to do "something" with the money saved there. The letter I received about the STB said I could move my savings to any of their accounts including HTB.. but then says "if you choose to open a HTB".. so I suspect I can't move my savings to an existing HTB. I am too old for a LISA (flipping age discrimination!!!!) and not yet in a position to get a mortgage (property is way too expensive here in my part of the country)

question is: Can I move my STB savings to my existing HTB account?

MDMD

in_spired2 wrote: »

Hi, I suspect the answer is "no" and if there's uncertainty I'll ask in branch but...

I have a Nationwide HTB and a STB. My STB will be closing in Mar 2020 and I will need to do "something" with the money saved there. The letter I received about the STB said I could move my savings to any of their accounts including HTB.. but then says "if you choose to open a HTB".. so I suspect I can't move my savings to an existing HTB. I am too old for a LISA (flipping age discrimination!!!!) and not yet in a position to get a mortgage (property is way too expensive here in my part of the country)

question is: Can I move my STB savings to my existing HTB account?

Only at the rate of £200 a month

MDMD

Freda_Fly wrote: »

As a forum newbie, I'm sorry if this has been addressed elsewhere, but I've been unable to find the answer to my query.
I hold cash ISAs from previous tax years but not 2019 - 20 as yet.
If I were to open a Help to Buy ISA soon, before they close in November 2019, and continued to pay in monthly for the next few years to maximise the government bonus, would that stop me from opening a traditional cash ISA next tax year? If so, it would mean foregoing £17,600 worth of tax free savings, so bad idea - is this the case please? I've read about split ISAs but the rates aren't very good. The HMRC savings helpline couldn't give me a sensible answer! Help please!
Thank you.

There’s a workaround which I have been using which is to transfer what you want to pay to a HTB ISA in this year to an ISA with one of the split ISA providers who offers a flexible ISA (this must be from prior year subscriptions as you have to transfer current year ones in full). I use Nationwide.

You can then withdraw these funds and then drip feed back into the HTB.

This leaves you free to use the subscription limits elsewhere.

torncurtain

I'm hoping someone can clarify or answer my questions. I'm asking for a family member who is in receipt of sick benefits. They read something about Help to Buy and so I thought I would try to find out some more info.

Who can/can't apply for a Help to Buy ISA? My family member is in receipt of ESA (old version not new-style, old version being means-tested) but would only be contributing a very small monthly amount. Are they allowed to get a Help to Buy ISA? They don't really have savings due to being on sick benefits but they'd like to take advantage of this if they're able to come off ESA and purchase a house in future. Presuming they could do the minimum contribution that way they're securing the possibility and adhering to ESA regulations?

Thanks

eskbanker

As long as they're 16 or over, UK-resident and haven't owned a stake in a property before then they can open a HTB ISA, as long as they do so by the end of next month....

torncurtain

As long as they don't go over their allowed amount of total savings while on this benefit, I think you're correct. At least this is what I understand. My family member asked the DWP, they didn't provide a clear answer. They said they didn't think it would be a problem but that they didn't know, which isn't helpful.