Is money transferred from a Help to Buy ISA to Lifetime ISA considered part of the annual ISA limit?

auwy975

Within this current tax year, I want to transfer from a Help to Buy ISA to an existing LISA. I have made no contributions to either the Help to Buy or the LISA in this tax year; however, I have contributed £20,000 into a separate cash ISA. I am being told by the building society that I have my LISA with, that I can't do this, because the £4,000 of old Help to Buy ISA money is considered as 'new' money when transferred to a LISA. I can't do this as I've already used the £20,000 ISA limit for the year. Does anyone know if this is correct?

sheramber

It may be that the building society concerned cannot do the transfer in.

You would need to close the Help to Buy ISA and pay the money into your lifetime ISA

As you have used up your isa limit you would need to wait until the new tax year.

eskbanker

https://forums.moneysavingexpert.com/discussion/6660109/is-money-transferred-from-a-help-to-buy-isa-to-lifetime-isa-considered-part-of-the-annual-isa-limit

No, it's not correct.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81926807#Comment_81926807

At least one building society do not do it

https://www.thenottingham.com/savings/savings-guides/transfer-your-help-to-buy-isa-to-lisa

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81926817#Comment_81926817

Sorry, perhaps should have clarified that I meant that their reasoning is incorrect, i.e. the false assertion that "the £4,000 of old Help to Buy ISA money is considered as 'new' money when transferred to a LISA" - as you say, LISA providers aren't obliged to accept transfers from HTB ISAs.

auwy975

To update… I put a complaint in at the building society. They have found that they were incorrect and are backdating the £4000 HTB transfer and I will still get the £1000 top-up from last years tax year.