Transfer not done in time

11C

Hi does anybody know? I have completed the paperwork to move £4K into a LISA approx 3 weeks ago. LISA provider is saying they will do their best by 5/4/2024. If they fail is my issue with the funds ‘receiver’ or ‘sender’. Is there anything I can do regarding the deadline possibly passing?

eskbanker

ISA transfers can take up to 30 days, who are you transferring from and to?

Have you used all of your 2023/24 £20K ISA allowance?

Edit: to answer the actual question asked, it's the receiving provider that's responsible for resolving any issues with an ISA transfer, but that doesn't actually make them liable as such if it doesn't complete on time.

11C

Thanks eskbanker moving 4K from a H2B isa held at NatWest to LISA at the Skipton. Not used any allowances in 2023/24. H2Buy £250K ceiling PP no longer any good to me. I opened a LISA in Feb 2023 now need to move across for LISA bonus and £450K PP. Thanks

eskbanker

11C said:

Thanks eskbanker moving 4K from a H2B isa held at NatWest to LISA at the Skipton. Not used any allowances in 2023/24. H2Buy £250K ceiling PP no longer any good to me. I opened a LISA in Feb 2023 now need to move across for LISA bonus and £450K PP. Thanks

If you haven't used any ISA allowance this tax year then you can simply withdraw £4K from your HTB ISA and pay it in as a new contribution to your LISA, i.e. in this particular situation there's no advantage to processing it as a transfer.

11C

Ok so as I have not used any allowance this year I can simply transfer myself as it not effectively new money. Challenge now is undoing/making sure NatWest & Skipton do not move the money as I could be faced with 4K x 2 into the LISA

eskbanker

11C said:

Ok so as I have not used any allowance this year I can simply transfer myself as it not effectively new money. Challenge now is undoing/making sure NatWest & Skipton do not move the money as I could be faced with 4K x 2 into the LISA

That shouldn't be an issue - if the ISA transfer arrives after you've funded it yourself but before the end of the tax year then it should get rejected, or if it's after the start of the new tax year then you'd presumably be planning to get another £4K shifted from HTB to LISA next year anyway?

11C

Thank you I was unaware that the Skipton would pick up that the account had already received £4K this year and so return any additional £4K to NatWest. And yep I shall be throwing another £4K very shortly after the start of 2024/25 tax year