Transferring Existing ISA, Opening new HTB ISA + LISA in same year?

edited 22 April 2017 at 2:51PM in ISAs & Tax-free Savings
5 replies 1.4K views
PotatoPotatoPotatoPotato Forumite
672 Posts
edited 22 April 2017 at 2:51PM in ISAs & Tax-free Savings
Hi,

Can someone please confirm if I can do all this in the same year.

1. Open the Coventry BS Cash ISA at 1.01% that allows transfers in - then transfer my previous years ISAs that I currently have with Virgin.

2. Then open a Help to buy ISA with Barclays and fund that with some of my ISA (I don't think I will be able to reach the £20k ISA limit within the 12 months).

3. Then in June Open a LISA with whoever is offering the LISA accounts.

This bit is the bit I'm a bit confused about: :o

4. Am I allowed to contribute money to both number 1. new transferred ISA and number 2. the newly Open HTB or are these two product classed as ISAs, therefore I can only contribute to one?

5. Come April 2018, I'll merge my HTB with my LISA.

Replies

  • masonicmasonic Forumite
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    1-3 are fine. 4 is not allowed because it would involve paying new money into two different cash ISAs within the same tax year.

    However, there is nothing to stop you paying into the Coventry ISA after transferring your HTB ISA into the LISA, even if you do it before the end of this tax year.
  • masonic wrote: »
    1-3 are fine. 4 is not allowed because it would involve paying new money into two different cash ISAs within the same tax year.

    However, there is nothing to stop you paying into the Coventry ISA after transferring your HTB ISA into the LISA, even if you do it before the end of this tax year.

    Ok thats great, thanks for the confirmation Masonic! :)
  • I don't think you can open both a help to buy Isa and cash Isa in the same tax year and put money in both, as a help to buy Isa is classed as a cash Isa. The rules state you can only open one cash isa a year unless they are wrapped.
  • greenglidegreenglide Forumite
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    I don't think you can open both a help to buy Isa and cash Isa in the same tax year and put money in both, as a help to buy Isa is classed as a cash Isa
    You can if they are with the same provider and they provide "split" ISAs - Nationwide is one.
  • masonicmasonic Forumite
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    greenglide wrote: »
    You can if they are with the same provider and they provide "split" ISAs - Nationwide is one.
    Presumably that's what Jamesdut means by "wrapped".
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