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HTB to LISA and keep the HTB
Wagas
Posts: 14 Forumite
Hello
So I'll be setting up a LISA this tax year, I'd be grateful if someone can confirm my calculations are correct. I've been paying the max into a HTB ISA since day one and I'm thinking I may as well keep it open as an ISA Reg Saver.
1. HTB balance as of 5/4/17 was £4,491.75. Interest is paid in Dec so I guess I ignore interest paid in Dec 17?
2. Transfer £4,491.75 to LISA before 5/4/18. This is the maximum I can transfer isn't it?
3. Pay £4k new money into LISA by 5/4/18 and the total of £8,491.75 will be eligible for 25% LISA bonus.
4. Continue to pay £200 pcm into the HTB.
Assuming I continue to pay £200 pcm into the HTB I'll be putting in £2,400 pa. That leaves £4k for the LISA and up to £13,600 for S&S ISA for 18/19 tax year.
Has anyone already done this and are the HTB providers happy to do a partial transfer to LISA and keep the HTB ISA open?
Many thanks
So I'll be setting up a LISA this tax year, I'd be grateful if someone can confirm my calculations are correct. I've been paying the max into a HTB ISA since day one and I'm thinking I may as well keep it open as an ISA Reg Saver.
1. HTB balance as of 5/4/17 was £4,491.75. Interest is paid in Dec so I guess I ignore interest paid in Dec 17?
2. Transfer £4,491.75 to LISA before 5/4/18. This is the maximum I can transfer isn't it?
3. Pay £4k new money into LISA by 5/4/18 and the total of £8,491.75 will be eligible for 25% LISA bonus.
4. Continue to pay £200 pcm into the HTB.
Assuming I continue to pay £200 pcm into the HTB I'll be putting in £2,400 pa. That leaves £4k for the LISA and up to £13,600 for S&S ISA for 18/19 tax year.
Has anyone already done this and are the HTB providers happy to do a partial transfer to LISA and keep the HTB ISA open?
Many thanks
0
Comments
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I'm looking at doing something similar as the interest on the HTB ISA is better than the LISA but just every year in March I'll transfer the money over and top up to £4000 for the LISA.
I don't think doing the transfer closes the HTB ISA as you can make early withdrawals on it anyway.0 -
Thinking of doing the same thing my myself as I'm with Barclays Help to Buy, and the Interest rate is pretty good (2.27%)
As I understand it, get the £4K into the LISA before April to get the £1k bonus and then April onwards interest is paid monthly on LISA instead.0 -
Thanks. Can someone confirm if my calculations are correct? I find it a bit confusing.0
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"The impact on your LISA allowance of transferring a Help to Buy ISA in depends on when you contributed. All money contributed to a Help to Buy ISA before LISAs launched (ie, before 6 April 2017) can be transferred in without affecting your LISA allowance – and you can get both the max £1,000 LISA bonus, plus the bonus on that Help to Buy ISA cash on top. Any money you contribute to the Help to Buy ISA after LISAs launch however will eat up your LISA allowance."
The above paragraph was copied from Martin's page assisting with the technicalities of the Help to Buy Isa and Lifetime ISA.
I hope this helps with your query.0 -
"Transfer a Help to Buy ISA into a LISA by 6 April 2018 and you get the bonus on ALL of it. If you transfer your Help to Buy ISA into a LISA, you'll get the bonus on that, as well as your LISA savings. The bonus will be added a few weeks after the end of the 2017/18 tax year (so around the start of May 2018). Money transferred in after that doesn't get the extra bonus."
The above is also from a page edited by Martin. You cannot get a bonus on any transfer made from a HtB ISA to a Lifetime ISA after 5 April 2018.0
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