Cash LISA

savings_my_hobby

If I paid into a HTB ISA since April'17, would I be able to open a cash LISA this tax year?

Would I have to transfer the HTB ISA into the LISA or could I open the LISA with £4000 and transfer the HTB ISA at a later date.

Thanks.

eskbanker

savings_my_hobby wrote: »

If I paid into a HTB ISA since April'17, would I be able to open a cash LISA this tax year?

Yes.

savings_my_hobby wrote: »

Would I have to transfer the HTB ISA into the LISA

No, but remember that if you keep them separate then you could only receive a 25% government bonus from one or the other, not both (unless you kept the LISA for retirement).

savings_my_hobby wrote: »

could I open the LISA with £4000 and transfer the HTB ISA at a later date.

Yes, but whenever you do so, the transfer value of all post-April 17 HTB contributions will count against the £4K annual allowance for LISA contributions.

Ed-1

savings_my_hobby wrote: »

If I paid into a HTB ISA since April'17, would I be able to open a cash LISA this tax year?

eskbanker wrote: »

Yes.

The H2B ISA is a cash ISA - you can't contribute to two cash ISAs at the same time unless with a split ISA provider like Nationwide/Ford.

savings_my_hobby wrote: »

Would I have to transfer the HTB ISA into the LISA or could I open the LISA with £4000 and transfer the HTB ISA at a later date.

Thanks.

If you want to contribute to another cash ISA this year and not with a split ISA provider, you must first transfer the H2B ISA into the new cash ISA or another type of ISA like LISA. You can then contribute to a new cash ISA.

You can open the LISA with £4,000 and transfer in the H2B ISA anytime this tax year but as all current year cash ISA subscriptions need to be kept together, you can't contribute to another cash ISA until you've got rid of the current year money in the H2B ISA.

eskbanker

Ed-1 wrote: »

The H2B ISA is a cash ISA - you can't contribute to two cash ISAs at the same time unless with a split ISA provider like Nationwide/Ford.



If you want to contribute to another cash ISA this year and not with a split ISA provider, you must first transfer the H2B ISA into the new cash ISA or another type of ISA like LISA. You can then contribute to a new cash ISA.

You can open the LISA with £4,000 and transfer in the H2B ISA anytime this tax year but as all current year cash ISA subscriptions need to be kept together, you can't contribute to another cash ISA until you've got rid of the current year money in the H2B ISA.

I think you may have missed the all-important 'L' in OP's question about a cash LISA, as your comments all relate to a different (unrequested) scenario of a non-Lifetime ISA!

Ed-1

eskbanker wrote: »

I think you may have missed the all-important 'L' in OP's question about a cash LISA, as your comments all relate to a different (unrequested) scenario of a non-Lifetime ISA!

Very true .

Although in my defense there's no such thing a cash LISA. It's just a LISA!

savings_my_hobby

If I transferred my HTB ISA into a cash LISA as planned and inherited a home or a share in a home before I used my LISA to buy one would I still be able to to use my LISA for a pension without the bonus being put into jeopardy?
Thanks.

Ed-1

savings_my_hobby wrote: »

If I transferred my HTB ISA into a cash LISA as planned and inherited a home or a share in a home before I used my LISA to buy one would I still be able to to use my LISA for a pension without the bonus being put into jeopardy?
Thanks.

Yes.......