isa conversion to a help to buy isa...

kezzygirl

evening everyone, I am after some advice regarding my isa.

I opened an isa with lloyds at the end of dec 2014, but I am keen to open a help to buy isa, but understand that I cannot do this within the same financial year.

I spoke with someone at lloyds, who told me that I could close my isa a year after its inception date- 30/12/2015. I called them on 30th dec, they told me that I could not close it and open a help to buy isa, as I have paid into it during this financial year, so I would have to wait.

My question is, can I pay money into my ordinary isa up until april? Or will this count that I have paid money in during the year? My husband has opened a help to buy isa with halifax, and I am keen to do the same, but don't really want to wait until april to save. My ordinary isa is currently empty .

My other option is stashing money in the house, and then paying this in to the help to buy isa when I open it in april. Does anyone know when I would have to close it to ensure I can open the help to buy in April? Many thanks kez

colsten

Lloyds were telling lies.

Here is the official government position. I have highlighted the bits that are relevant to you:

I already have a cash ISA – can I open a Help to Buy: ISA too?

You can put money into a cash ISA and Help to Buy: ISA in the same tax year, but you will have to take additional steps.

If you paid into a cash ISA after 5 April 2015, to open a Help to Buy: ISA this tax year (ie before 6 April 2016), you will have to transfer your active cash ISA to a Help to Buy: ISA.

You can transfer up to £1,200 of your active cash ISA balance into your Help to Buy: ISA. Anything more than this should be moved into either a stocks and shares ISA or a non-ISA account.

- See more at: https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#sthash.oOJ1ee5V.dpuf

I wouldn't recommend an S&S ISA for you at this stage, and that you don't bother with transferring part of you ISA into the Halifax ISA as it is empty anyway. You can simply close the Lloyds ISA completely. Don't tell Lloyds that you want to open an HTB ISA, just tell them to close the account with immediate effect.

Once the Lloyds ISA is closed, you can then instantly open the Halifax H2B ISA. You are allowed to do this once a tax year, under the [URL="httphttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/459781/isa-guidance-notes.pdf://"]general ISA Rules [/URL](that Lloyds probably don't have a clue about, that's why you shouldn't even discuss it with them). Clause 12.32 refers, if you want to read up the details.

Put all your money into current accounts and feed your Halifax ISA from there. https://forums.moneysavingexpert.com/discussion/5374614

kezzygirl

wowsers, thank-you! I will call them tomorrow, cheeky so and so's!