New First Time Buyer ISA to replace LISA

masonic

https://forums.moneysavingexpert.com/discussion/comment/82045468#Comment_82045468

You mean 60? There's nothing to suggest these can't continue to be used for retirement in line with the existing scheme rules - and it was confirmed this would be the case in an earlier statement.

PennysIntoPounds

Thanks @masonic, it was my understanding you can't put more in after 50, but good to know the 'retirement' LISAs won't be affected

masonic

https://forums.moneysavingexpert.com/discussion/comment/82045549#Comment_82045549

That's right, you must cease contributions at 50, and hold until 60 to access penalty free.

intalex

We've not reached there yet, but once someone turns 60, presumably there will be an allowable option to transfer a LISA into a normal ISA or simply an in-place conversion of the LISA into an ISA retaining its cash/S&S form… if it does require a transfer, hopefully this won't be restricted to S&S-only on the premise of 60 being under 65…

masonic

https://forums.moneysavingexpert.com/discussion/comment/82045894#Comment_82045894

I don't think a S&S LISA would be allowed to be transferred into a cash ISA by someone 60-65 with the proposed rules in force.

It will be interesting to see if the tax charge on S&S ISAs will apply to S&S LISAs.

garfield33

I've just had a whizz through the consultation. The FTB ISA looks promising.

I have a HTB ISA, and am too old for a LISA but a transfer to FTB could be enticing.

Two points jump out to me

1 - it says that the FTB ISA has to have been open for a year to be eligible for the bonus - so if I transferred my HTB ISA over, would I still have to wait a year, or would they opening date of the HTB ISA be counted?

2 - in the table on page 21, under Delivery Model, it has "multiple providers" for FTB ISA and LISA, but for HTB ISA it has "single provider (NS&I)" - yet the MSE page shows that HSBC and Halifax/BOS/Lloyds still allow transfers of existing HTB ISA. (I admit that I may have misunderstood what this row means)

noclaf

I hold an S&S LISA, was originally opened as a Cash LISA to build up a deposit for a first property but due to a change in circumstances I would no longer be regarded as FTB and therefore will have to wait till 60 (15 yrs away) to access penalty-free so transferred to S&S LISA a number of years back in the hope of improved returns. I assume no change to my situation based on the consultation as seems as the current product will remain in place.

Mos07

Hi

Looking for a little advice around the new FTB ISA. My Son turns 18 this week and I was going to open him a LISA and deposit the max this year and next. My question is would you guys recommend this to claim max bonus until FTB ISA comes out, or am I opening up more complexity and issues by doing this and not waiting until FTB in 2028. Would it be Better investing that 8000 else where until things are a little clearer. Thanks

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82054212#Comment_82054212

Firstly, as an adult product, he needs to open it himself, rather than you doing so for him.

There's no harm in opening one now just to get the clock ticking, if there's any possibility of looking to buy within a year, but (given withdrawal penalties) there's little point in funding one significantly until more details are known about how the old and new products compare, after the current consultation, so hang fire until, say, March 2027 before deciding where to commit.