Lifetime isa questions

claire***_2

Hello, i have a couple of LISA questions that i cant find the answer to so am hoping someone can help. I opened a Cash LISA in the last tax year just before my 40th birthday. I contacted hargreaves with a query today to see if i can transfer this to their stocks and shares LISA and was told that they cant transfer a LISA due to complications (you can transfer in an ISA). So my questions are:-

1. Is this the case for all LISA providers that they cannot be transferred around?
2. As i have not contributed to the LISA in this current tax year am i able to open one with another provider (bearing in mind that i am now 40).

Thanks in advance for any help!

masonic

LISAs should be transferable. "Complications" sounds like a temporary problem at HL.

Yes, even though you are now 40 you can open a new LISA expressly for a transfer, but obviously you cannot add any new money (or transfer in from a different type of ISA).

Zorillo

Surely they can contribute new money once they've opened it with the transfer in, up until age 50?

masonic

Zorillo wrote: »

Surely they can contribute new money once they've opened it with the transfer in, up until age 50?

Yes my answer was a bit confusing - post-transfer this is fine, but the LISA must be opened expressly for the transfer of another LISA and until that transfer is complete it cannot be used for new funds or transfers of other types of ISA.

Alexland

HL have made a business decision to stop accepting LISA transfers - our transfers from Nutmeg to HL were in progress when they made the decision to stop accepting new transfer requests.

Other providers such as AJ Bell YouInvest are still accepting LISA transfers. Even if you are over 40 you should be able to transfer your existing LISA to AJ Bell and continue to contribute up to your 50th birthday.


Alex.

masonic

Alexland wrote: »

HL have made a business decision to stop accepting LISA transfers - our transfers from Nutmeg to HL were in progress when they made the decision to stop accepting new transfer requests.

That's slightly worrying, given the lack of choice already. I wonder if others will follow suit and customers end up with no practical means of switching elsewhere if they want to find a better deal after a hike in charges, for example.

claire***_2

So I've contacted AJ Bell today who do accept LISA transfers BUT......as i am now 40 i cannot apply for the account as their systems are set up to reject applications for anyone over 39. They did say that they have had a few queries regarding this and may get this resolved at some point, but not in the imminent future. So looks like i am stuck with my original option. Im starting to see why these are not popular and providers want to steer clear.

Alexland

That's disappointing but useful to know about AJ Bell. As LISA balances grow with more contributions and reinvested dividends over the years hopefully the transfer market will open up again.