Paying into Help to Buy ISA then transferring into a Lifetime ISA

jessicakdp

Hi,
I've currently got a Help to Buy ISA which I pay into every month. I won't buy a house within the next year so want to set up a Lifetime ISA when the cash ones are released, which I will transfer my Help to Buy ISA into. I know that you can only pay into 1 ISA each year so can I pay into my Help to Buy ISA in May then set up a Lifetime ISA which I will transfer my Help to Buy into and pay into that? I hope that makes sense!!
Thank you

isasmurf

Yes.


Any contributions made to the HTB in 17/18 that are transferred to the LISA will count towards the LISA allowance.

Eco_Miser

jessicakdp wrote: »

I know that you can only pay into 1 ISA each year

Not actually true. You can only pay into 1 cash ISA (including HTB), 1 S&S ISA, 1 LISA and 1 IFISA each year, to a combined maximum of £20000. That's four ISAs in one year.
And yes, you can keep paying into the HTB until the LISA is available. Make sure you do the transfer before next April, so that your HTB balance at 5th April, but not anything paid in after that, is in addition to the £4000 LISA allowance.

jessicakdp

Thank you for your help