Mistake.. Should've opened a LISA

CarlosCW91

Hi all,

What's the best course of action if i've opened a H2B ISA in the 2017/18 tax year but want to make use of this tax year for the LISA bonus?

It obviously makes sense to go with the LISA as i'll get £1000 bonus for the 2017/18 tax year but don't know where i stand as far as opening a LISA now that I have already opened a cash ISA for this financial year?

Am i right in thinking I'm going to have to close the H2B ISA, THEN open a LISA? I can't, for example, open a LISA now and then transfer the H2B in can I?

Cheers in advance.

ValiantSon

Open a LISA and transfer in the HTB.

CarlosCW91

But you can only open one cash ISA per tax year no? Therefore I'd be opening 2 in one tax year even though it's only temporary?

ValiantSon

CarlosCW91 wrote: »

But you can only open one cash ISA per tax year no? Therefore I'd be opening 2 in one tax year even though it's only temporary?

You can open both an HTB and a LISA in the same year.

https://www.moneysavingexpert.com/savings/lifetime-ISAs?_ga=2.221523869.422122905.1517614376-1520321530.1473373186#buyingaproperty

Alexland

A LISA even in cash is not a type of Cash ISA - you are fine.

If you don't intend to use much of your £20k ISA allowance this tax year then it might just be easier to open a LISA and add £4k cash (withdrawing from the HTB ISA if you don't have enough on hand).

Alex

CarlosCW91

Cheers guys - Thanks for your help - the Cash ISA allowance per tax year was what was throwing me!