Help to Buy ISA advice

MDTDTD

Good Evening All,
I have a query regarding Help to Buy ISAs and how it affects the £20,000 tax free allowance that you can contribute to a standard cash isa.

I just recently read the following: The rule is that you can only contribute new money into one ISA of each type each tax year.

Therefore does this mean if you choose to contribute the max £2,400 per year (£200 per month) does this mean you can't put £20,000 cash into a separate cash ISA in that same calendar year.

I just want to make sure as I have both a cash isa and a help to buy ISA and I want to ensure that I'm following the rules.

Thanks for any advice guys and I hope everyone is staying safe!

eskbanker

£20K is the annual allowance to cover all ISAs in aggregate, so if you pay £2,400 into a HTB ISA then you have a remaining allowance of £17,600 to pay into others.  However, since HTB is a cash ISA, you can't pay anything into another cash ISA in the same tax (not calendar) year, unless both are with one of the providers accommodating 'split ISAs': https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-0334234523-3