Close and reopen LISA

Yes, if you want to you can sell your investments and then use the money to buy new investments with a new provider.

If you have a LISA then selling your investments and then closing will result in the penalty of 25% being invoked. This would actually mean a loss of 6.25% on your original investment. I'd avoid this if I were you.

You wouldn't be able to do an in specie transfer from Nutmeg to HL, but you should be able to do a cash transfer (thus keeping the ISA wrapper and also the government bonus for the LISA).

pilotamx wrote: »

As far as I know, as I am still in the first LISA year and I haven't get bonus government yet, I can do it without any penalty. From 6th April, penalty will be applied.

Right, you don't get a penalty for withdrawing money, if there is no bonus applied for yet.

But you still can't go over the maximum contribution limit for the year, and your total contributions will include what you put into Nutmeg (and then removed) as well as what you will want to put into HL before 6 April. If all of that is below £4k, no issue. If it's over (due to the double-counting, e.g. you had already put £3k into Nutmeg and want to put the £3k into HL which would be £6k - you would be better to approach HL and asking them to use an official transfer process to withdraw your assets from Nutmeg and pay them into a new LISA with them.

As Valiant mentioned, you won't be able to transfer the actual investment assets from Nutmeg (the exact underlying mix of ETFs) but you can request that it's just transferred as cash. Assuming HL's systems are set up to accept transfers of cash from LISAs.