LISA 12 months restriction question 19 March at 7:32AM in ISAs & tax-free savings 3 replies 74 views

ncmscnc

I understand all LISAs must have been open for a full year before they can be used towards a house purchase.

We have opened our LISA with Moneybox during 21-22 and closed it within 14 days cooling off period. 

Now, when we tried to open with them again, they said it’s not possible according to their policy and something to do with informing HMRC. 

Does that mean we might be able to open with another provider and immediately use the boost towards a house purchase?

thats £4000 on the table. 😟

masonic

No, a LISA must have been open for 12 months for a penalty-free withdrawal to be made. Your LISAs were cancelled under cooling off, so are treated as not being opened, so you will not have been deemed to have opened a LISA or used any of your allowance. The Moneybox policy is an internal one if they are refusing to have you as customers, having previously closed accounts with them.

You are free to open with a new provider, and the 12 month clock would start from that opening date.

Albermarle

It is known that if you transfer out of a Moneybox LISA, then they will not allow you to transfer in again,
As said it is an  internal policy for some reason.

eskbanker

ncmscnc said:

We have opened our LISA with Moneybox during 21-22 and closed it within 14 days cooling off period. 

Sounds like it's too late for you now, but for the benefit of any other readers who may be in a similar situation, it would have made far more sense to have put a token quid in there and left it (to start the clock ticking), rather than cancelling....