LISA to ISA?

isa_newbie

My daughter set up an ISA and LISA some years ago with the aim to save for a first home. Since opening both she stopped saving money in the ISA a few years ago (but still kept a small lump sum in it) and continued with monthly payments into the LISA and has a larger lump sum in it.  However, she has since moved abroad and may end up buying property abroad at some future date.  I'm assuming if she withdraw her money from the LISA, she would lose @6% of her savings? Would it be possible to  transfer her LISA money into her ISA account instead without the penalty being imposed. Any suggestions for the best option for her, with minimum penalties, if thats possible please

eskbanker

A transfer from a LISA to a non-Lifetime ISA is treated in the same way as a withdrawal for penalty purposes, so the 25% deduction would be applied.  The only way to avoid the withdrawal penalty is to buy a qualifying first property or to wait until 60....

Emmia

isa_newbie said:

My daughter set up an ISA and LISA some years ago with the aim to save for a first home. Since opening both she stopped saving money in the ISA a few years ago (but still kept a small lump sum in it) and continued with monthly payments into the LISA and has a larger lump sum in it.  However, she has since moved abroad and may end up buying property abroad at some future date.  I'm assuming if she withdraw her money from the LISA, she would lose @6% of her savings? Would it be possible to  transfer her LISA money into her ISA account instead without the penalty being imposed. Any suggestions for the best option for her, with minimum penalties, if thats possible please

Now that she's living abroad, she also cannot pay into the ISA.

masonic

There seems little point withdrawing it before she needs to access it. There's always a possibility the penalty may be reduced in the future, or perhaps she will be able to use it for retirement instead.