Pay into H2B ISA and LISA in the same financial Year?

abdul56

Hello,
I currently have a Help to buy ISA (H2B ISA) in its second year. I want to pay into both H2B ISA and Lifetime ISA (LISA).

Can I pay the full £2400 H2BISA and £4000 into my LISA in the same year?

I want the H2B ISA bonus for a house and LISA Bonus for retirement.

I found this on MSE website which says I cannot, however I have found other contradictory posts on the forum.
http://blog.moneysavingexpert.com/2016/07/25/24984/

''.... – Open a top Help to Buy ISA now and save the max in it.
– In April 2017, if you can save more, also open a LISA and put as much as you can in up to £1,600 (the LISA limit minus £2,400, a year’s maximum Help to Buy contributions). Yet only do this if you’re sure you will buy a home at some point, if not follow rule 4.....''

Can anyone show guidence and evidence I can pay the full amount into both?

Many thanks

Ed-1

abdul56 wrote: »

Hello,
I currently have a Help to buy ISA (H2B ISA) in its second year. I want to pay into both H2B ISA and Lifetime ISA (LISA).

Can I pay the full £2400 H2BISA and £4000 into my LISA in the same year?

I want the H2B ISA bonus for a house and LISA Bonus for retirement.

I found this on MSE website which says I cannot, however I have found other contradictory posts on the forum.
http://blog.moneysavingexpert.com/2016/07/25/24984/

''.... – Open a top Help to Buy ISA now and save the max in it.
– In April 2017, if you can save more, also open a LISA and put as much as you can in up to £1,600 (the LISA limit minus £2,400, a year’s maximum Help to Buy contributions). Yet only do this if you’re sure you will buy a home at some point, if not follow rule 4.....''

Can anyone show guidence and evidence I can pay the full amount into both?

Many thanks

There are 4 ISA categories in law:
Cash ISA - a Help to Buy ISA is one of these
Stocks and shares ISA
Innovative finance ISA
Lifetime ISA

You can pay into one of each in each tax year subject to the annual ISA limit of £20,000.

The Lifetime ISA was established by the following amendment regulations to the ISA regulations so there's your 'evidence':

http://www.legislation.gov.uk/uksi/2017/466/contents/made

If you want it in a more 'user-friendly' format https://www.gov.uk/government/publications/design-of-the-lifetime-isa-technical-note

Why note transfer previous year money from the Help to Buy ISA into the Lifetime ISA? That way you can get a bigger bonus for buying a house than you can with a Help to Buy ISA.

eskbanker

The context of the blog referred to by OP is use of the LISA specifically for a first-time property purchase - if you're planning to use the LISA only for retirement purposes than you can pay the full annual £4K in and get bonuses on it, while also paying the maximum into the HTB and getting the bonus on that too.

See http://www.moneysavingexpert.com/savings/lifetime-ISAs#ntk6

Ed-1

eskbanker wrote: »

The context of the blog referred to by OP is use of the LISA specifically for a first-time property purchase - if you're planning to use the LISA only for retirement purposes than you can pay the full annual £4K in and get bonuses on it, while also paying the maximum into the HTB and getting the bonus on that too.

See http://www.moneysavingexpert.com/savings/lifetime-ISAs#ntk6

Why would you want the bonus on the Help to Buy ISA when you can get a bigger one on the LISA?

eskbanker

Ed-1 wrote: »

Why would you want the bonus on the Help to Buy ISA when you can get a bigger one on the LISA?

It's not really for me to answer that but OP, who specifically said "I want the H2B ISA bonus for a house and LISA Bonus for retirement.".