Help to Buy ISA guide

mrs_T

I advised my son to open a halifax help to buy isa when they became available which has been a disaster from day one. He opened one on line but didn't fund it in the time limit, we had to go into the halifax and they closed the original and opened another which we funded with the initial £1200 then and there. Since then he has been unable to pay any money in, we've tried online payment from two different bank accounts both of which bounced back, he tried to pay in over the counter but they told him the only way to pay in was by standing order which we tried but it also bounced back. Has anyone else had these issues and found a way to pay in?

mattdale1988

Can married couples each have an isa?

katies_mum

Good morning, could I ask a question please?

My daughter aged 19 is hoping to open a Halifax Right to Buy ISA within the next week or so. If this opens successfully will she also be able to open a new cash ISA at the beginning of the new tax year in April if she wants to? as we have read that you cannot pay into 2 ISA`s in the same tax year so are a little confused as once the Right to Buy ISA is open she would be paying into this on an ongoing monthly basis.

With the change in the personal savings allowances she might not opt for an ISA in the new tax year, but she is unsure as to whether or not she could open one if she already has the Help to Buy one.

Many thanks

masonic

mattdale1988 wrote: »

Can married couples each have an isa?

Yes they can. If both qualify for a HTB ISA, they can both open one and combine them when taking out a joint mortgage.

katies_mum wrote: »

With the change in the personal savings allowances she might not opt for an ISA in the new tax year, but she is unsure as to whether or not she could open one if she already has the Help to Buy one.

She would be very wise not to opt for a cash ISA - since even if she were paying tax on the interest, she could probably do better in a non-ISA account, but if she plans to continue contributing to her HTB ISA she will not be permitted to put any new money into a cash ISA anyway.

colsten

mrs_T wrote: »

I advised my son to open a halifax help to buy isa when they became available which has been a disaster from day one. He opened one on line but didn't fund it in the time limit, we had to go into the halifax and they closed the original and opened another which we funded with the initial £1200 then and there. Since then he has been unable to pay any money in, we've tried online payment from two different bank accounts both of which bounced back, he tried to pay in over the counter but they told him the only way to pay in was by standing order which we tried but it also bounced back. Has anyone else had these issues and found a way to pay in?

Your son needs to read the terms and conditions and then stick to them

mattdale1988 wrote: »

Can married couples each have an isa?

The 'I' in ISA stands for individual. Each individual who qualifies for an HTB ISA can have one.

katies_mum wrote: »

My daughter aged 19 is hoping to open a Halifax Right to Buy ISA within the next week or so. If this opens successfully will she also be able to open a new cash ISA at the beginning of the new tax year in April if she wants to? as we have read that you cannot pay into 2 ISA`s in the same tax year so are a little confused as once the Right to Buy ISA is open she would be paying into this on an ongoing monthly basis.

With the change in the personal savings allowances she might not opt for an ISA in the new tax year, but she is unsure as to whether or not she could open one if she already has the Help to Buy one.

This Q has been asked dozens of times, and the answer still remains the same: there are split ISA providers with whom you can have more than one ISA to pay into in the same tax year but the interest rates are terrible and it isn't obvious why anyone would want to have these ISAs. Even before the PSA, for most people a normal cash ISA has been a bad choice as there are non-ISA accounts that pay much better interest.

masonic

colsten wrote: »

there are split ISA providers with whom you can have more than one ISA to pay into in the same tax year but the interest rates are terrible and it isn't obvious why anyone would want to have these ISAs.

Yes, and to be absolutely clear, Halifax is not one of these providers, so if she goes with the Halifax HTB ISA (which she should), she will not be able to do this.

katies_mum

Thank everyone you for taking the time to reply. I had read about the split ISA`s and knew that meant the current tax year, we wern`t sure it applied to the new tax year as well.

johnny1966

Hi All

I currently live and work in Greece for about 10 months a year. I pay tax into the Greek system. I am a UK citizen (British born and Bred) but due to my job I work in a different UK country. I have a permanent UK address (rental). I don't really understand if I can open one of the new HTB ISA account to save towards buying my first house. Can anyone help me understand this better?

Thanks

masonic

johnny1966 wrote: »

I currently live and work in Greece for about 10 months a year. I pay tax into the Greek system. I am a UK citizen (British born and Bred) but due to my job I work in a different UK country. I have a permanent UK address (rental). I don't really understand if I can open one of the new HTB ISA account to save towards buying my first house. Can anyone help me understand this better?

You need to be UK resident to be eligible for a HTB ISA. From what you have said, it seems you are not.

https://www.gov.uk/tax-foreign-income/residence

Jengles

I've opened an ISA and put in the £1200.

It says I have to pay my £200 before 25th of each month. I get paid 26th/27th of each month so would be tight to pay it just before payday each month. Can I just pay early in the month or does that mean i'm going to somehow lose a month?