Transfer Lifetime ISA to ISA after 60

doodlector

Hi.  I know that you can normally only transfer a LISA to another LISA but does this change after you reach the age 60?

After 60 does the LISA become a normal ISA so it is possible to transfer to other ISAs.

The guidance I can find doesn't seem to address this explicitly, only saying that 'you can remain invested' or withdraw the money after the age of 60.

eskbanker

https://www.gov.uk/guidance/transfer-lifetime-isas-between-managers#transfer-lifetime-isas-to-other-types-of-isas

Transfer Lifetime ISAs to other types of ISAs

You can also transfer Lifetime ISAs to other types of ISAs. These transfers are treated as a withdrawal from the Lifetime ISA and are subject to a 25% withdrawal charge unless:

• the transfer happens after the investor’s 60th birthday
• the investor has declared that they have a terminal illness

doodlector

eskbanker said:

Transfer Lifetime ISAs to other types of ISAs

You can also transfer Lifetime ISAs to other types of ISAs. These transfers are treated as a withdrawal from the Lifetime ISA and are subject to a 25% withdrawal charge unless:

• the transfer happens after the investor’s 60th birthday
• the investor has declared that they have a terminal illness

That's great, thanks.  It's good to have a gov.uk reference.   I can imagine there might be some inconsistency with providers as it's not something they'll have to worry about till the first LISA holders reach 60 years old...  in 2037 I th

intalex

"treated as a withdrawal" somewhat conflicts with the concept of an ISA transfer... not clear if it implies loss of ISA wrapper status or not

eskbanker

intalex said:

"treated as a withdrawal" somewhat conflicts with the concept of an ISA transfer... not clear if it implies loss of ISA wrapper status or not

Perhaps clumsily worded, but it doesn't imply loss of ISA status - it's simply meant to reflect the fact that the Lifetime ISA withdrawal penalty is applied equally to (non-FTB or pre-60) withdrawals and transfers to other types of ISA, i.e. transferring can't be used as a workaround to circumvent that penalty.