Transfer of Nationwide Help to buy ISA to Lifetime ISA

l_g_ftb

My partner and I are both first time buyers and we hope to buy a new house in February next year. The property is £390,000 and we will be buying a 25% share. I understand that because the value of the house is above £250,000 my partner won't be able to benefit from the government bonus on the £6,000 he has in his HTB ISA. Would it therefore be beneficial for him to transfer his HTB ISA to a LISA and would there be any downsides to this. I also have a LISA and have not deposited anything into it this tax year. Is there a way we could deposit £4,000 is to a LISA for my partner and the rest in to my LISA?

eskbanker

Money can only be accessed from a LISA without penalty for a first property purchase if the LISA has been open for at least a year, so your plan works if you each have LISAs that were open in February 2024, and if you have at least £2K left of your 2024/25 annual ISA allowance (he can transfer from HTB to LISA but the rest would need to go into yours as new money).