Missed Skipton LISA transfer deadline

ValiantSon

MissedLisaDeadline wrote: »

Why only a portion of it? Is it because you think I should deposit the £4k allowance from different accounts so my remaining balance in my HTB benefits from the higher interest rate?

Yes. Make use of the better interest rate in the HTB. You can transfer it near the end of next tax year to benefit from that year's bonus, having earned the interest in the HTB. I'd only recommend moving more now if the previous year's balance was less than £4,000.

Plus

ValiantSon wrote:

I think that you may have prevented yourself from using the AJ Bell workaround by paying £100 into the Skipton LISA. Others may correct me, but I think that's it now.

I think you're OK if you deposited into the Skipton LISA, because you're transferring old money. In other words, you start off like this:

HTB ISA 16/17 £nnnn @ Halifax
HTB ISA 17/18 £zzzz @ Halifax
LISA 17/18 £100 @ Skipton

and you transfer the HTB 16/17 to AJ Bell:

LISA 16/17 £nnnn @ AJ Bell
HTB ISA 17/18 £zzzz @ Halifax
LISA 17/18 £100 @ Skipton

Once that's done, your HTB ISA is converted and there's no time limit on doing:

HTB ISA 17/18 £zzzz @ Halifax
LISA 16/17 + 17/18 £100+nnnn @ Skipton

You're only able to transfer pre 6Apr17 HTB money in this instance, but anything you paid in in this tax year you could simply withdraw and pay directly into Skipton.

Alexland

From the government ISA Managers guidance:

"9B.16 During 2017/18 tax year only, investors who are eligible to open a Lifetime ISA may make a single transfer of funds (including interest) up to the value built up in their Help to Buy: ISA as at 5 April 2017 into a Lifetime ISA, without this amount counting towards the £4,000 Lifetime ISA payment limit. However, any such transfer must not breach the 'one Lifetime ISA per tax year' rule."

Plus

Ah yes, you're right (9B.22):

"Is a payment disregarded for the 'one LISA per tax year rule'?
-> Funds held at 05/04/17 in Help to Buy: ISA and transferred to LISA before 6 April 2018 (see para 9B.15 - 9B.17): NO"

(I have done this, but done the consolidation transfer before the end of the year so it will all appear as a single LISA in the HMRC return. I suppose I'll find out if this causes problems in due course!)