LISA Contributions Gone Wrong?

tnIRV

I have recently transferred my HTB ISA into a LISA to get the extra interest bonus money for this tax year.

This years contributions were about £2,200 into the HTB ISA so i believed i then had £1,800 contributions left to put into my LISA before the end of this tax year (minus £152 interest i had on the money in my HTB ISA) to fill it up to the total of £4000.

However i have been told by my LISA bank that i only have £366.07 left to fill up this years contributions!

I don't understand how it can go from £1,800 (minus the £152 interest) to £366.07. I have asked for their calculations and await a reply hopefully in time for me to transfer money before this tax year is up!

Any ideas what this could be??? Have i missed something?

The total amount moved into LISA from HTB ISA was £5,833.93.

Ed-1

tnIRV wrote: »

I have recently transferred my HTB ISA into a LISA to get the extra interest bonus money for this tax year.

This years contributions were about £2,200 into the HTB ISA so i believed i then had £1,800 contributions left to put into my LISA before the end of this tax year (minus £152 interest i had on the money in my HTB ISA) to fill it up to the total of £4000.

However i have been told by my LISA bank that i only have £366.07 left to fill up this years contributions!

I don't understand how it can go from £1,800 (minus the £152 interest) to £366.07. I have asked for their calculations and await a reply hopefully in time for me to transfer money before this tax year is up!

Any ideas what this could be??? Have i missed something?

The total amount moved into LISA from HTB ISA was £5,833.93.

Which providers were the H2B ISA and LISA with? Seems like a mistake in counting some of the H2B ISA balance at 5th April 2017 towards the LISA limit.

pink_pirlie

£2200 would be the max you could transfer for 17/18 assuming you made 11 payments into the H2B before transferring.

I am not sure how the interest element works but I assume only interest on the H2B for 17/18 should be counted as part of the £4000 limit for the year so you would need to ensure they have only counted that.

My only other thought is to wonder if you had already deposited money in the LISA in 17/18. What did you deposit to open the account?
Could this be the difference between £1800 and £366 less interest?

thenewguy

tnIRV wrote: »

I have recently transferred my HTB ISA into a LISA to get the extra interest bonus money for this tax year.

This years contributions were about £2,200 into the HTB ISA so i believed i then had £1,800 contributions left to put into my LISA before the end of this tax year (minus £152 interest i had on the money in my HTB ISA) to fill it up to the total of £4000.

However i have been told by my LISA bank that i only have £366.07 left to fill up this years contributions!

I don't understand how it can go from £1,800 (minus the £152 interest) to £366.07. I have asked for their calculations and await a reply hopefully in time for me to transfer money before this tax year is up!

Any ideas what this could be??? Have i missed something?

The total amount moved into LISA from HTB ISA was £5,833.93.

Have you been subscribing into other types of ISA? Your LISA allowance is also bound by your £20,000 ISA allowance, e.g. if you've paid £19,000 into a cash ISA in a given tax year, you can then only put £1,000 into a LISA regardless of the £4,000 LISA allowance.

I'm guessing that's not the case though, so it's probably a mistake on the transfer form. HTB ISA providers have been getting these forms very, very wrong all year.

tnIRV

Ed-1 wrote: »

Which providers were the H2B ISA and LISA with? Seems like a mistake in counting some of the H2B ISA balance at 5th April 2017 towards the LISA limit.

H2B ISA was Halifax and LISA is Skipton. Yes im still waiting for a reply i just hope i can get it sorted before the 5th!

tnIRV

pink_pirlie wrote: »

£2200 would be the max you could transfer for 17/18 assuming you made 11 payments into the H2B before transferring.

I am not sure how the interest element works but I assume only interest on the H2B for 17/18 should be counted as part of the £4000 limit for the year so you would need to ensure they have only counted that.

My only other thought is to wonder if you had already deposited money in the LISA in 17/18. What did you deposit to open the account?
Could this be the difference between £1800 and £366 less interest?

I have been paying in the max of £200 every month since 2016 so i did pay into the H2B ISA the 11 payments for this tax year, and then have transferred the whole amount including previous years into the LISA (which aren't included towards my allowance).

My understanding is that they include the £2200 H2B ISA contributions and £152 interest from it, towards this years LISA allowance of £4000. So calculations...
2,200 + 152 = 2,352; 4000 - 2,352 = 1,648
So i should be allowed to pay in £1,648 towards this years £4000 contributions allowance.

Haven't deposited any other money into it apart from the H2B ISA transfer money when it was opened. So still dont understand why they think i can only pay in £366.07 :huh::huh::huh:

tnIRV

thenewguy wrote: »

Have you been subscribing into other types of ISA? Your LISA allowance is also bound by your £20,000 ISA allowance, e.g. if you've paid £19,000 into a cash ISA in a given tax year, you can then only put £1,000 into a LISA regardless of the £4,000 LISA allowance.

I'm guessing that's not the case though, so it's probably a mistake on the transfer form. HTB ISA providers have been getting these forms very, very wrong all year.

No don't have any other ISA's open, only the H2B ISA which was closed after the contents were transferred to the LISA opened this March/April.

Yes its very frustrating!!! Especially when im running out of time!