12 month LISA rule - transfers? 8 August 2022 at 9:12AM in ISAs & tax-free savings 6 replies 51 views

Oasis1

I was about to transfer my LISA to Nude. They have eligibility criteria which includes "Aiming to buy a home in more than 12 months". I am hoping to buy within the next 12 months but I assumed if I'm transferring an existing LISA that's 12m+ old then I don't need to worry about this rule.

Am I wrong?   Does opening a new LISA and transferring in reset the time? If so, incredibly annoying!

Oasis1

According to https://www.moneysavingexpert.com/savings/lifetime-isas/

It's worth bearing in mind that if you open multiple LISAs, each one needs to have been open for more than 12 months to qualify. However, there's a way around this. Simply transfer all the money into the oldest one before you buy – then it all counts.

Or you can keep the clock ticking by rolling all your LISAs into one, year after year. So if you opened a LISA in June 2021, you could transfer it to another provider in June 2022 and even though the original account would no longer exist, you'd still be able to use your LISA for a home this summer, as the transfer kept the 12-month count running.

So if I do a transfer, from my old LISA, it's fine? Or do I need to keep the old one open, and transfer the money back when I want to buy?

masonic

The original opening date is preserved when a LISA is transferred providing you use the new provider's transfer process and don't self-transfer the money.

Oasis1

masonic said:

The original opening date is preserved when a LISA is transferred providing you don't self-transfer the money.

Thanks. Out of interest, who holds that information (original opening date)?

masonic

Oasis1 said:

Thanks. Out of interest, who holds that information (original opening date)?

The ISA provider holds this information alongside the amount you have subscribed, etc.

Oasis1

masonic said:

Oasis1 said:

Thanks. Out of interest, who holds that information (original opening date)?

The ISA provider holds this information alongside the amount you have subscribed, etc.

So Nude will recieve the info from my old provider? Tempted to keep £1 with my old provider just incase I need to transfer it back

masonic

Oasis1 said:

masonic said:

Oasis1 said:

Thanks. Out of interest, who holds that information (original opening date)?

The ISA provider holds this information alongside the amount you have subscribed, etc.

So Nude will recieve the info from my old provider? Tempted to keep £1 with my old provider just incase I need to transfer it back

Yes, it's part of the electronic transfer record or paperwork sent with the transfer cheque, depending on which process is used.