S+S LISA to Cash LISA confusion

owsemyr

Hello everyone,

I opened a stocks and shares LISA with Nutmeg in April 2017. When Skipton opened their Cash LISA, I transferred my stocks and shares LISA into the Cash LISA. At the time, I thought that the 1 year that the account must be open for would carry over to the new account. Having spoken to someone from Skipton today, this is not the case (apparently). Can someone shed some light on this please? Because I've seen on another forum that others are saying that the opening anniversary DOES carry over. I cannot find it in writing on any credible website, so if possible, could someone help me out? Thank you in advance!

Alexland

I believe the Skipton person you are talking to is incorrect - it's 12 months from the initial contribution to the first LISA provider. Skipton should have collected this information from Nutmeg as part of the transfer.

Page 156 in the government guidance for ISA Managers:

"A manager should also not authorise a charge free withdrawal from a Lifetime ISA within 12 months of the first payment to that account (or if the account has been transferred from another manager, within 12 months of the first payment to the original Lifetime ISA)."

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/603261/ISA_Lifetime_ISA.pdf

Alex

cjv

This had me worried for a moment, I have just instructed a transfer from Nutmeg to Skipton myself with the possibility of using the funds in less than 12 months.

Thanks for clearing that up Alex.

Alexland

I suspect that Skipton have not been collecting the opening date as part of the transfer so there could be a delay at withdrawal in getting access to the money while they go back to the old provider and check. I suggest you keep a printout of the Nutmeg webpage showing the initial contribution date incase you need to prove it.

cjv

Good idea, I will keep evidence of my first Nutmeg contribution date.

I have just sent an enquiry to Skipton too, to get confirmation. I will post there response here when they reply.

Alexland

Thanks that would be really helpful.

cjv

Seems the member of staff OP spoke to made a mistake or was just misinformed. Good to have confirmation, I was a little worried.

Thank you for your recent communication with Skipton Building Society.

I can confirm that the 12 month minimum account opening period before you are able to use the funds from your Lifetime ISA for a first house purchase does start from the date that the account was first opened and not from the date that it is transferred to us. For example if you opened the Stocks and Shares Lifetime ISA in May and then made the transfer over to us now then you would still have access to the funds in May.

Alexland

Please can you ask them if they capture the original LISA opening date as part of the transfer request to your old provider. Knowing this would help us help others with concerns in this area?

cjv

Done Alex, I will post back after they reply.

Hello,

Could you please tell me if you capture the original opening date of a LIfetime ISA from the previous provider as part of the ISA Transfer process?

I am seeking reassurance that there would be no delays when using the LISA to purchase a property, 12 months from the date I originally opened my LISA with my previous provider.

Kind Regards

cjv

Nothing specific to say they capture the date, but I have faith this will be the case. If not we may have our first LISA misselling scandal some time soon? and if so, I will of course be seeking millions in compensation

Thank you for your message.

If you previously have a Lifetime ISA with another provider and would be looking to transfer this over into the Lifetime ISA with Skipton, the start date will be from when your originally opened it with your other provider as opposed to when you opened it with Skipton.

If you are looking at doing a transfer we would require the Transfer Authority Form returning before 1st March 2018 as this is the deadline for any transfers into the Lifetime ISA, please let us know as soon as possible if you would require us to email you one of these.

Alexland

Well we will see soon if they have a backlog of data to catch-up on when people with transferred LISAs start to try and use them.