Help to Buy ISA

ET18

Hi

I recently opened a help to buy ISA, (this month) with Nationwide and deposited £1200. Am I able to also open a cash isa,because thid year my isa allowance is 20000 but it will not reach this amount with £200deposits each month?

Also if i decide to purchase a house over 250000 outside of London,I will still gain tax free interest jsut no 25%bonus?

Thanks

Ed-1

ET18 wrote: »

Hi

I recently opened a help to buy ISA, (this month) with Nationwide and deposited £1200. Am I able to also open a cash isa,because thid year my isa allowance is 20000 but it will not reach this amount with £200deposits each month?

Also if i decide to purchase a house over 250000 outside of London,I will still gain tax free interest jsut no 25%bonus?

Thanks

Ordinarily you can't pay into a second cash ISA in the same tax year (a Help to Buy ISA is also a cash ISA). However Nationwide treat all cash ISAs held with them as a single ISA, so you can open a separate cash ISA with them if you want to.

ET18

Thanks.

How does changing ISA provider affect this?

Alexland

ET18 wrote: »

How does changing ISA provider affect this?

This tax year it would be a problem as you would have broken the rules and subscribed to 2 cash ISAs in the same tax year. Stick to Nationwide to keep within the rules.

On you other question if you buy above the HTB property price limit then yes you still get the interest but no bonus. If the £250k limit is likely to be a problem consider the Skipton Lifetime ISA which, although it is cash, does not count as a cash ISA. Read the T&C's carefully.

Alex

ET18

And so when the new tax year comes, how does it work with the ISA ? can you continue in the same ISA / change isa ?

Sorry, I'm new to this

Flobberchops

When the new tax year comes you can continue paying into the existing ISAs, which in the case of the Help To Buy is probably your intention.



OR, you could let the old ISAs sit there and open new one(s) with some or all of the next year's subscription limit (probably £20k, same as this year). In that case you would be restricted to only leaving, withdrawing, or transferring the "old" ISA money.