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LISA Deposit

focarroll
Posts: 1 Newbie
Hi. I currently have a HTB ISA open but I am interested in transferring to a LISA. I know there is a £4000 deposit limit per tax year however I was wondering whether an initial deposit to a LISA can be more than £4000?
Thank you :-)
Thank you :-)
0
Comments
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The initial deposit is subject to the same rules, so you can transfer a maximum of £4000 this tax year. There is no reason you can't keep contributing to the HTB ISA while you have excess money to save.0
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You can only add up to £4k to the LISA this tax year either by direct contribution or HTB ISA transfer (or a mix of both). For example you could add £2k and transfer a HTB ISA for £2k.
If your HTB ISA is greater than £4k then you could partially transfer it - but observing the rule that the current tax year contributions need to be kept together.
However it might be easier to withdraw some money and do a direct contribution if you are unlikely to use your overall £20k ISA contribution allowance anyway this tax year.
Alex0 -
Sorry, let me clarify... I've suggested to a friend who has had a HTB ISA that she should look into a LISA, as I've transferred from the former to the latter when they first became available and liked that I was able to save more in a LISA and therefore received a higher bonus. What I am trying to find out is whether she would be able to transfer her whole H2B balance into the LISA (like I did, when it was possible back in the day) or if this option is no longer there and she is better off sticking to her H2B. She plans on buying in a year or two, so I don't think she would be able to accumulate more in a LISA than in H2B if she is unable to move the entire balance.0
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There was a special transitional concession in the first tax year that LISAs were available where you could transfer the whole HTB ISA across without limit. It sounds like you took advantage of this.
However you (or she) can now only add up to £4k to the LISA each tax year either by direct contribution or HTB ISA transfer (or a mix of both).0 -
Ok, that's exactly what I wanted to know- thank you!0
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