Transfer help to buy to lifetime

smallzoo2

Can someone answer this question for me

My son has £520 in a Barclays help to buy ISA. He wants to transfer it maybe to a moneybox Lifetime ISA.

Simple... But he wants to take £500 out first before he transfers. Will this either  a)  be fine and the 25% bonus be added to any funds he adds to the lifetime isa b) reduce any 25% government bonus or c) would lose any bonus 

Hope someone can help

Thanks 

eskbanker

smallzoo2 said:

My son has £520 in a Barclays help to buy ISA. He wants to transfer it maybe to a moneybox Lifetime ISA.

Simple... But he wants to take £500 out first before he transfers. Will this either  a)  be fine and the 25% bonus be added to any funds he adds to the lifetime isa b) reduce any 25% government bonus or c) would lose any bonus 

If he has £520 in a HTB ISA and wants to access £500, is he really looking to put £20 into a LISA or is there perhaps a typo in one or both of those amounts?  Anyway, sounds like your (a) is the closest answer, although they don't really seem mutually exclusive - the bottom line is that anything moved from a HTB ISA other than for a property purchase doesn't earn a bonus and anything paid or transferred into a LISA earns a 25% bonus within a month or two thereafter, so the net result is that if he transfers £20 into the LISA then he'd get a fiver added.

Edit: re-reading this, if the actual question is can he earn (and be able to use/access) 25% of the whole £520 then the answer is no, unless it's being put towards a first-time property purchase.

smallzoo2

He was told if he took money out of the HTB other than to purchase a property and then transferred to a Lisa ant bonus is cancelled for the Lisa even if he saves into it for the next 10 years.. Ie if he takes any money at all out of the HTB it cancels any future bonus with the HTB or LISA

eskbanker

smallzoo2 said:

He was told if he took money out of the HTB other than to purchase a property and then transferred to a Lisa ant bonus is cancelled for the Lisa even if he saves into it for the next 10 years.. Ie if he takes any money at all out of the HTB it cancels any future bonus with the HTB or LISA

Whoever told him that was mistaken, or something was misunderstood!  The two schemes are essentially independent but it's only possible to use the bonus from either one or the other (but not both) when buying a first property, perhaps the confusion was related to that?