Lifetime ISA - Help to Buy Transfer or Transfer via bank transfer

LewisBeedle

Hi,

I currently have a help to buy ISA which I opened last tax year, however I am looking to also open up a lifetime ISA this tax year.

I am hoping to save up £1600 per year into this account and move the remaining 2400 per year out of my help to buy ISA into the lifetime ISA to put in the max £4000 per tax year.

Instead of transferring in my help to buy ISA via a transfer form, can I (just before the end of each tax year) move the money out of my help to buy ISA and into the lifetime ISA (£2400). The reason I want to do this instead of completely closing my help to buy ISA down is because of the flexibility the help to buy ISA provides with taking out the money if I need to for emergencies.

My hope is that each tax year I can save £1600 per tax year into a lifetime ISA then just before the end of each tax year effectively bank transfer the remaining £2400 I save each year in help to buy ISA to my lifetime ISA. That way, each tax year I have 11 months of the tax year where I can access a chunk of the money if I need to for emergency reasons rather than suffering a 25% penalty (20% with coronavirus). Hope that makes sense and thanks. 

Zorillo

Yes that all makes sense and is possible.

Although if the reduced penalty for LISA withdrawals is made permanent, then the money in a LISA will be as accessible as an H2B anyway.