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Help to Buy ISA guide

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2.2K replies 344.3K views
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  • jimjamesjimjames Forumite
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    I am in a similar situation where my partner and I pay monthly into my isa, does this mean we both we would have to get split ISA S? It's still a little confusing.

    ISAs are individual savings account so you have to have one each and can't split one between you.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Aj28Aj28 Forumite
    2 posts
    Thanks.

    1) So I should open a HTB at the highest rate with £1200 and then continue with £200/month until in a position to buy...

    2) However doing this with say, Halifax I am unable to further save Tax free until April?

    3) And any other savings I have should go into a high interest bank account which is taxed?
  • colstencolsten Forumite
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    Aj28 wrote: »
    1) So I should open a HTB at the highest rate with £1200 and then continue with £200/month until in a position to buy...
    yep
    Aj28 wrote: »
    2) However doing this with say, Halifax I am unable to further save Tax free until April?
    they are right but it doesn't matter, ignore them. Tax free savings aren't so desireable outside an HTB ISA anyway
    Aj28 wrote: »
    3) And any other savings I have should go into a high interest bank account which is taxed?
    yep. But remember, from April 2016 onwards, you have a £1,000 savings interest allowance as a BR tax payer, and £500 as a higher rate tax payer.
  • colstencolsten Forumite
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    kelbel908 wrote: »
    Can someone help me please, if I go for the halifax htb isa that is offering 4% but buy a house in less than a year do I loose out on earning 4% tax free because this is paid annually?
    You will get interest for each and every day you had money in the account. The stadard payment date is not relevant to how much interest they owe you, and they'll pay what they owe when you close your account.
  • I'm tempted to run to the bank and set up an ISA now but would the best deals be coming after Christmas when people start thinking more about buying a house?
  • jimjamesjimjames Forumite
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    lukie-jay wrote: »
    I'm tempted to run to the bank and set up an ISA now but would the best deals be coming after Christmas when people start thinking more about buying a house?

    If you think you'll wait to get much better than 4% then I think you'll be waiting a very, very long time.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Hi all, I like to think I'm clever enough to understand all this but I'm still a bit stumped. If anyone could simplify what I should do I would be really grateful.


    I opened a cash ISA with my bank (HSBC) in January 2015 (Tax year 2014-2015)
    Since January 2015 I have paid just over £6000 into the ISA
    I understand that I can open a HTB ISA as I've not opened a cash ISA this tax year
    I have however paid into a cash ISA this tax year (2015-2016)


    Does this mean that I need to have a split HTB ISA & Cash ISA
    Or can I transfer the initial £1200 into a newly opened HTB ISA for the first month and keep the rest of the money in my current cash ISA (or transfer to an ISA with a better rate)?


    I hope this makes sense!!! Many thanks in advance :D
  • colstencolsten Forumite
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    Johno85 wrote: »
    Since January 2015 I have paid just over £6000 into the ISA
    why oh why. But what's done is done.

    Johno85 wrote: »
    I understand that I can open a HTB ISA as I've not opened a cash ISA this tax year
    I have however paid into a cash ISA this tax year (2015-2016)
    the opening date is totally irrelevant. what counts is what you paid in (subscribed to) in the current tax year.

    Johno85 wrote: »
    Does this mean that I need to have a split HTB ISA & Cash ISA
    that might be the easiest for you in the situation you are in

    Johno85 wrote: »
    Or can I transfer the initial £1200 into a newly opened HTB ISA for the first month and keep the rest of the money in my current cash ISA (or transfer to an ISA with a better rate)?
    nope you can't. There might be some other option - look for the discussion on "self repair" - but I fear this might be too complicated and you might be best going for that split ISA for now. You could then correct the situation in the new tax year by stopping any further subscription to the non-HTB ISA, putting your spare cash into one or more of the best interest paying accounts, and transferring your HTB ISA to whoever offers the best interest rate next April.
  • Hi, regarding the issue of not being able to get the bonus if you rent out the property. I am currently not planning to rent out the house which I buy with the HTB ISA but because of work I may have to move and would probably rent out the property and rent somewhere else closer to my new place of work.
    How does the HTB ISA work in this case? Is there a minimum period before you can rent out the property? Would it be expected to pay back the bonus somehow?
    Thanks in advance.
  • My boyfriend owns a home and I am looking to buy half of it and have a join mortgage on it, would I be eligible or would we need to be moving?
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