Help to Buy ISA guide

Nigel_Baker

If, for whatever reason, someone didn't end up buying a house (e.g. they inherit one), is it easy enough to transfer the funds out to a different ISA type? I.e.a stocks and shares ISA or the new IFISA.

I think it is effectively just a cash ISA at that point, but I've not seen it written explicitly.

Nigel

heavypeople

Hi, can't find the answer to this anywhere!

I opened a HTB ISA with Halifax, but the property we're buying is too expensive due to being just outside London boroughs.. Will I be able to hold on to the account once I'm a homeowner, even though I'll never be able to use it to buy a house or get the government bonus? It's a 4% interest rate and easily accessible so quite convenient at the moment..

Thanks

Rich2808

heavypeople wrote: »

Hi, can't find the answer to this anywhere!

I opened a HTB ISA with Halifax, but the property we're buying is too expensive due to being just outside London boroughs.. Will I be able to hold on to the account once I'm a homeowner, even though I'll never be able to use it to buy a house or get the government bonus? It's a 4% interest rate and easily accessible so quite convenient at the moment..

Thanks

Technically you should close it as you are no longer eligible for the account. It's up to you - I doubt anyone will bother checking though as you arent claiming the bonus assuming your mortgage isn't with the Halifax. I will leave it to your conscience.

Any help to buy isa funds can be moved into another isa - and from next April the new lifetime isa if you are under 40.

masonic

Nigel_Baker wrote: »

If, for whatever reason, someone didn't end up buying a house (e.g. they inherit one), is it easy enough to transfer the funds out to a different ISA type? I.e.a stocks and shares ISA or the new IFISA.

I think it is effectively just a cash ISA at that point, but I've not seen it written explicitly.

It can be transferred in to a different type of ISA subject to the usual rules.

heavypeople

Rich2808 wrote: »

Technically you should close it as you are no longer eligible for the account. It's up to you - I doubt anyone will bother checking though as you arent claiming the bonus assuming your mortgage isn't with the Halifax. I will leave it to your conscience.

Any help to buy isa funds can be moved into another isa - and from next April the new lifetime isa if you are under 40.

Thank you for your help. I'll probably close it as not worth the hassle if it is technically illegal.

aparky85

Can anyone help? I've opened a HTB ISA with Halifax, but one thing confuses me a little.

A year ago my Nan died, and in her estate was a house. This was sold before the estate was divided up between five of us. My name was never on any deeds or anything like that, so my question is am I still eligible as a first time buyer or not?

Graham0654

The Help to Buy ISA Guide says that you can't open a Cash ISA and HTB ISA in the same tax year. So since I opened the HTB ISA in December 2015, does that mean I am free to open a Cash ISA in April 2016 (providing that the total contribution does not exceed the government limit)?

masonic

heavypeople wrote: »

Thank you for your help. I'll probably close it as not worth the hassle if it is technically illegal.

You should check the terms carefully. I don't know if it is technically "illegal" to continue to hold the account. Eligibility requirements relate to opening the HTB ISA and claiming the money on the purchase of a house - the bit in between is not tested AFAIK. It may not be feasible to continue adding money in the next tax year because it would be treated as a new ISA application and you may need to declare your eligibility to do so, which you can no longer do. However, contributing to it and holding it are two different things.

aparky85 wrote: »

Can anyone help? I've opened a HTB ISA with Halifax, but one thing confuses me a little.

A year ago my Nan died, and in her estate was a house. This was sold before the estate was divided up between five of us. My name was never on any deeds or anything like that, so my question is am I still eligible as a first time buyer or not?

Cash raised from the sale of property is not property, so if the house itself never passed to you, then I don't see there being a problem.

Graham0654 wrote: »

The Help to Buy ISA Guide says that you can't open a Cash ISA and HTB ISA in the same tax year. So since I opened the HTB ISA in December 2015, does that mean I am free to open a Cash ISA in April 2016 (providing that the total contribution does not exceed the government limit)?

The guide is wrong. You can open a cash ISA and HTB ISA in the same tax year. What you can't do is contribute new money to both, unless both are with a specialist provider who treats them as if they were one account.

Stephen_Brown

masonic wrote: »

The guide is wrong. You can open a cash ISA and HTB ISA in the same tax year. What you can't do is contribute new money to both, unless both are with a specialist provider who treats them as if they were one account.

So does this mean in April 2016 I can open up a Cash ISA and pay into this if I'm also still paying into a HTB ISA?

masonic

Stephen_Brown wrote: »

So does this mean in April 2016 I can open up a Cash ISA and pay into this if I'm also still paying into a HTB ISA?

I refer you back to my previous post: "What you can't do is contribute new money to both, unless both are with a specialist provider who treats them as if they were one account."

So no, you can't pay into both.