Transferring HTB ISA into LISA

aman88

Hi all

I currently have £3,800 in my HTB ISA. With the new Lifetime ISA going live next month, am I better off transferring what will be £4,000 at the time into the LISA? What I'm really asking is, if you can save up to a maximum of £4,000 a year in the LISA, and I transfer £4,000 straight in from my HTB ISA, is that my April 2017-April 2018 allowance used up, or can I put the £4,000 in then save a further £4,000 over the year giving me my £8,000 savings plus £2,000 bonus in April 2018?

TIA

Liam12345

Transferring your HTB ISA does not count as part of your allowance, so you could add another £4k over the year if you wanted.

aman88

Thanks for the reply

So to clarify, 6th April I open a LISA and transfer £4,000 into it. Save £4,000 over the coming year and in April 2018 will recieve a 25% for the whole amount leaving me with £10,000?

Liam12345

aman88 wrote: »

Thanks for the reply

So to clarify, 6th April I open a LISA and transfer £4,000 into it. Save £4,000 over the coming year and in April 2018 will recieve a 25% for the whole amount leaving me with £10,000?

Correct. Providing you use the LISA to purchase a property.