Benefit of transferring from HTB ISA to LISA

no_moolah

Hello, could anyone please explain the benefit of a direct transfer from a HTB ISA to a LISA? Is there any benefit compared to transferring £4k from a HTB ISA into a current account, then paying the £4k straight into the LISA? Thanks

eskbanker

Withdrawing £4K from a HTB ISA and paying it into a LISA uses up £4K of your £20K annual ISA contribution allowance, which wouldn't apply to a direct transfer, but if you're unlikely to be breaching that limit then there's no particular disadvantage in going via a current account....

no_moolah

That's helpful to know, thank you. And yes, sadly unlikely to be breaching that limit!