ISA contributions

Est.1882

Hi All,

Just wanted to check my current ISA contributions before the end of the tax year.

So far in 17/18 I have:
Subscribed £100 to S/S LISA -> Transferred to Cash LISA
Subscribed £2000 to Cash HTB ISA - > Transferred to Cash LISA

I believe the LISA and ISA allowances are separate, so just wanted to confirm the below is correct?

- I have £1900 LISA allowance left.
- I have £18000 ISA allowance left.
- Having subscribed to a Cash HTB ISA already this year I cannot subscribe to another Cash ISA but can subscribe to either a S/S or IF ISA

Thanks.

Tom99

[FONT=Verdana, sans-serif]The £4,000 LISA allowance is part of your max £20,000[/FONT]
[FONT=Verdana, sans-serif]So I think you have a total of £17,900 ISA allowance left for 2017/18 which you can split as follows:[/FONT]
[FONT=Verdana, sans-serif]LISA - Max £1,900[/FONT]
[FONT=Verdana, sans-serif]ISA - £17,900 - £1,900 = £16,000[/FONT]
[FONT=Verdana, sans-serif]You can of course put less than £1,900 in the LISA[/FONT]

eskbanker

The headroom in your LISA will be less than £1900 because the interest earned in the HTB also counts towards the £4K LISA limit (but not the overall £20K ISA allowance), so if you're planning to top up your cash LISA to the maximum £4K then check how much HTB interest was added when that was transferred and adjust accordingly.

Skipton haven't covered themselves in glory on this so may be indicating a remaining allowance that doesn't take that interest into account, but that's not how the rules are defined....

Also, if the HTB was closed by transferring it in its entirety to the LISA then you could theoretically fund another cash ISA this tax year, although better options for your money are likely to be available.

Est.1882

Thanks.

I've transferred the remaining £1711 [£4000 - (100 + 2000 + This year's HTB Interest 189)] into the LISA, so that leaves me with £16,189 allowance to fund any other ISA.

You're right about the Skipton not being particular clear though, as on my LISA account page it tells me my remaining ISA allowance is £17,900 (Before the latest transfer) so ignoring the interest.