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Transferred HTB to LISA, so can I open a cash ISA this year?

I think I'm right in saying that:

(1) If you pay into a Help to Buy ISA then you CANNOT pay into a regular cash ISA that year.

(2) If you pay into a Lifetime ISA then you CAN pay into a regular cash ISA that year too.

But I have a question that kind of slips through the cracks between (1) and (2). I paid into a Help to Buy ISA this year, but then I transferred it all into a Lifetime ISA. Which applies in this case, (1) or (2)?

Comments

  • Plus
    Plus Posts: 434 Forumite
    Ninth Anniversary 100 Posts Combo Breaker
    If you transfer an ISA from the current tax year between type A of ISA to type B, it's as if you never opened a Type A ISA in the first place. So you should be able to open another cash ISA since the transfer means you effectively never had a cash ISA this year. It all gets reported to HMRC at the end of the year, so as long as the situation goes by the rules before then there's no problems.
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