Paying into a LISA and H2B isa

20SmthngSver

Ah okay. But I'd still be paying to both Lifetime and Help to Buy ISA's in the 2020/21 tax year, so still couldn't transfer to a Cash ISA?

eskbanker

20SmthngSver wrote: »

Ah okay. But I'd still be paying to both Lifetime and Help to Buy ISA's in the 2020/21 tax year, so still couldn't transfer to a Cash ISA?

No, the rules relate to paying new money into multiple ISAs of the same type - there's nothing to stop you transferring money from previous years into a cash ISA in the same year as paying new money into a HTB, as suggested by masonic.

20SmthngSver

So I can open a S&S ISA in 2019/20 tax year (while still paying into Lifetime and Help to Buy) then in 2020/21 tax year can transfer it to a Cash ISA, fixed or flexible access?

eskbanker

20SmthngSver wrote: »

So I can open a S&S ISA in 2019/20 tax year (while still paying into Lifetime and Help to Buy) then in 2020/21 tax year can transfer it to a Cash ISA, fixed or flexible access?

Yes.

And just to reiterate masonic's point, if you fund the S&S ISA very late in the tax year, e.g. March 2020, then it's only in there for a short time (can be left uninvested) before transferring it over to a cash one to start earning interest.

Alexland

If you intend to quickly transfer to a Cash ISA then pick a S&S provider (eg Vanguard) who will not automatically invest the money (eg Nutmeg - to avoid the volatility of a short investment period) and who will not charge an exit fee (eg HL).

20SmthngSver

Cool thanks you too. Just seems a bit of a waste to have £13,600 that I can't make use off easily. So if I did the above, I can transfer to an easy access or flexible Cash ISA for the 2020/21 tax year and make withdrawals and deposits as and when I choose?

Alexland

20SmthngSver wrote: »

Cool thanks you too. Just seems a bit of a waste to have £13,600 that I can't make use off easily. So if I did the above, I can transfer to an easy access or flexible Cash ISA for the 2020/21 tax year and make withdrawals and deposits as and when I choose?

Yes your transferred S&S ISA would become a Cash ISA from a previous tax year so you would be fine to make withdrawals but for future deposits you are still limited to contributing to one Cash ISA (inc HTB ISA) per tax year unless you have a Split Cash ISA.

Alex

JackA86

Need some advice.

Am I allowed to open a h2b isa and a Lisa in the same year?

Thanks

eskbanker

JackA86 wrote: »

Need some advice.

Am I allowed to open a h2b isa and a Lisa in the same year?

Thanks

The restrictions on multiple ISAs relate to paying new money into more than one rather than opening them, but either way round the answer is yes, as already discussed further up the thread.

JackA86

Great thanks.