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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 1st Dec 15, 3:23 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Help to Buy ISA guide
    • #1
    • 1st Dec 15, 3:23 PM
    Help to Buy ISA guide 1st Dec 15 at 3:23 PM

    Click reply below to discuss. If you haven!!!8217;t already, join the forum to reply. If you aren!!!8217;t sure how it all works, read our New to Forum? Intro Guide.
Page 76
    • MarkP80
    • By MarkP80 20th Feb 18, 9:12 AM
    • 18 Posts
    • 1 Thanks
    MarkP80
    Hi,

    My daughter has been saving into a LISA, but her boyfriend has a Help-To-Buy ISA. If they were to buy a property together, can they use these two different ISAs, or do they have to both have the same type?

    Many thanks,
    MarkP
    • Alexland
    • By Alexland 20th Feb 18, 12:18 PM
    • 2,544 Posts
    • 1,928 Thanks
    Alexland
    My daughter has been saving into a LISA, but her boyfriend has a Help-To-Buy ISA. If they were to buy a property together, can they use these two different ISAs, or do they have to both have the same type?
    Originally posted by MarkP80
    That's fine they can each use either although the use of the HTB ISA will limit the property value outside London.

    Alex
    • fsmith
    • By fsmith 21st Feb 18, 7:14 PM
    • 1 Posts
    • 0 Thanks
    fsmith
    Hi there, I'm about to finally be debt free for the first time in my adult life (student debt etc) and want to start investing so I can move out of rented accommodation, get a dog and build a home. I live in London so actually owning a home that I can enjoy in a part of london I can enjoy will be very difficult as I don't have any capital yet. No parental help etc. So I think this means for me, it's probably more realistic to look to build a boat (lifestyle attractive to me too) and pay residential mooring fees instead of rent. Then at least I can live in a beautiful space I've designed in a beautiful part of london instead of the likely alternative which would probably be a characterless, pokey new build, in a part of london I don't like and or on a part-ownership basis.

    So my question is - would anything prevent me from using a help to buy isa to buy either a boat to live on or a mooring freehold?

    Thanks a lot, Fran
    • eskbanker
    • By eskbanker 21st Feb 18, 7:38 PM
    • 7,401 Posts
    • 7,963 Thanks
    eskbanker
    So my question is - would anything prevent me from using a help to buy isa to buy either a boat to live on or a mooring freehold?
    Originally posted by fsmith
    Among other criteria, the HTB ISA scheme only applies to first-time purchase of land which "comprises a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use", so it certainly wouldn't apply to a boat and I can't see how a mooring freehold would qualify either, although to be fair I don't know exactly what that actually consists of....
    • jshhghs
    • By jshhghs 12th Mar 18, 2:47 PM
    • 1 Posts
    • 0 Thanks
    jshhghs
    Hi, a few months ago I opened a Help to Buy ISA through Barclays online banking without depositing any money, so the balance has always been zero. I now want to start saving into it. Can I pay in my first deposit of £1200 because I haven't made any other deposits yet? Or does it have to be the max of £200 because it's been open longer than a month. Thanks.
    • eskbanker
    • By eskbanker 12th Mar 18, 6:59 PM
    • 7,401 Posts
    • 7,963 Thanks
    eskbanker
    The £1200 applies to the first month in which a deposit is made rather than the month of opening, as per Barclays Ts & Cs:
    3.2 The maximum amount you can deposit within the calendar month of your first deposit is £1,200.
    and the scheme rules (6.1(a)):
    A Help to Buy: ISA Holder shall be entitled to pay in aggregate up to the Maximum First Month Amount into their Help to Buy: ISA in the first month in which they pay any amounts into their Help to Buy: ISA.
    If you won't be buying for at least a year, you may be better off with a Lifetime ISA instead of a HTB though, higher annual contributions possible and a higher property value cap outside London (but lower interest rate).
    • MonicaR
    • By MonicaR 14th Mar 18, 3:19 PM
    • 3 Posts
    • 0 Thanks
    MonicaR
    Hi,

    I understand that if I am contributing monthly to a Help to buy isa then I cannot also contribute to another cash isa even if I open it in a subsequent tax year. However, if I were to withdraw some funds from a previous years flexible cash isa would I then be able to replace the funds in that flexible cash isa later in the same tax year as well as still contributing monthly to my help to buy isa?

    Many thanks
    • Rich2808
    • By Rich2808 14th Mar 18, 4:06 PM
    • 613 Posts
    • 469 Thanks
    Rich2808
    Hi,

    I understand that if I am contributing monthly to a Help to buy isa then I cannot also contribute to another cash isa even if I open it in a subsequent tax year. However, if I were to withdraw some funds from a previous years flexible cash isa would I then be able to replace the funds in that flexible cash isa later in the same tax year as well as still contributing monthly to my help to buy isa?

    Many thanks
    Originally posted by MonicaR
    This only really works easily if you have your help to buy and cash isa with a split isa provider like Nationwide. Aldermore or RBS/Natwest.

    You can the pay into a help to buy isa and a normal cash isa (or several cash isas with that bank) during the same tax year.

    You can of course also invest your £20k isa allowance in stocks and shares ISAs innovative finance isas and if under 40 a lifetime isa without these issues.
    • MonicaR
    • By MonicaR 14th Mar 18, 4:41 PM
    • 3 Posts
    • 0 Thanks
    MonicaR
    Thanks for reply but apologies, perhaps my question wasn!!!8217;t very clear.
    I realise I cannot contribute to a help to buy and cash isa (unless with a split isa provider eg Nationwide) But what I want to clarify is if I can withdraw funds from previous years (flexible) isa I already hold and then replace those funds in that isa in addition to funding my different/separate help to buy isa monthly.
    Sadly, I do not currently have the full 20k allowance to invest!
    • neilevans
    • By neilevans 14th Mar 18, 4:45 PM
    • 2 Posts
    • 0 Thanks
    neilevans
    I have a 17
    • neilevans
    • By neilevans 14th Mar 18, 4:49 PM
    • 2 Posts
    • 0 Thanks
    neilevans
    I have a 17 year old son who has been saving in a Junior ISA for many years. He now has some £10k saved in total. He wants to start a stocks & shares LISA when he is !8 in June this year to specifically save for a home deposit and wonders if there's any advantage in transferring (if he can) his Junior ISA into this new LISA? Also, we don't understand how, if at all, any transfer would possibly impact on his LISA allowance of £4k pa and his overall ISA allowance of £20k pa. Any help and clarification would be most welcome.
    • Rich2808
    • By Rich2808 14th Mar 18, 5:32 PM
    • 613 Posts
    • 469 Thanks
    Rich2808
    Thanks for reply but apologies, perhaps my question wasn!!!8217;t very clear.
    I realise I cannot contribute to a help to buy and cash isa (unless with a split isa provider eg Nationwide) But what I want to clarify is if I can withdraw funds from previous years (flexible) isa I already hold and then replace those funds in that isa in addition to funding my different/separate help to buy isa monthly.
    Sadly, I do not currently have the full 20k allowance to invest!
    Originally posted by MonicaR
    Yes – you can replace prior year isa funds held in a flexible isa and also invest in a help to buy isa. You are using two different tax year allowances – and two years flexibility.

    What you couldn’t do is invest in a flexible cash isa this year and also invest in a help to buy isa – using 2017-18 funds. Unless of course you are with a split isa provider like Nationwide/RBS/Natwest etc
    • eskbanker
    • By eskbanker 14th Mar 18, 6:54 PM
    • 7,401 Posts
    • 7,963 Thanks
    eskbanker
    I have a 17 year old son who has been saving in a Junior ISA for many years. He now has some £10k saved in total. He wants to start a stocks & shares LISA when he is !8 in June this year to specifically save for a home deposit and wonders if there's any advantage in transferring (if he can) his Junior ISA into this new LISA? Also, we don't understand how, if at all, any transfer would possibly impact on his LISA allowance of £4k pa and his overall ISA allowance of £20k pa. Any help and clarification would be most welcome.
    Originally posted by neilevans
    He can transfer up to £4K from JISA into any LISA that accepts inbound transfers in any given tax year - this will count towards the £4K LISA contribution limit (which applies to new money or transferred funds) but wouldn't count towards the £20K annual ISA allowance.
    • MonicaR
    • By MonicaR 14th Mar 18, 6:57 PM
    • 3 Posts
    • 0 Thanks
    MonicaR
    Thanks Rich2808, that was the answer I was hoping for!
    • athonjon
    • By athonjon 16th Mar 18, 11:41 AM
    • 9 Posts
    • 1 Thanks
    athonjon
    I'm pleased that a credit union is offering a Help to Buy ISA. The Polish Credit Union (based in Ealing, West London) has a HtB ISA account with an interest rate of 2%. I'm planning to transfer mine over to them in the new tax year.

    Just wondering if anyone on here has this account or is with this credit union? And if so, what's the customer service been like?
    • TheGoodKing
    • By TheGoodKing 29th Mar 18, 9:58 AM
    • 13 Posts
    • 4 Thanks
    TheGoodKing
    Hi, hopefully someone can help here.

    I have a cash isa that i've had for a few years and a HTB isa I opened this year.
    After April, can I transfer the old isa in to a new higher interest one, but still pay in to the HTB isa? I won't be paying anything in to the new cash isa - it will just have the transferred money.

    Thanks in advance.
    • Alexland
    • By Alexland 29th Mar 18, 9:20 PM
    • 2,544 Posts
    • 1,928 Thanks
    Alexland
    I have a cash isa that i've had for a few years and a HTB isa I opened this year. After April, can I transfer the old isa in to a new higher interest one, but still pay in to the HTB isa? I won't be paying anything in to the new cash isa - it will just have the transferred money.
    Originally posted by TheGoodKing
    Sure you can transfer old Cash ISAs from previous tax years between providers at any time without it counting as a new contribution. As such you can have a different Cash ISA (such as an HTB ISA) with another provider with active contributions.

    Alex.
    • davobur
    • By davobur 31st Mar 18, 4:05 PM
    • 4 Posts
    • 2 Thanks
    davobur
    Lisa or Help to buy?
    My daughter intends to buy a house within the next couple of years. She is not currently living in UK but will return home soon. My question is this: Can she apply for either ISA now and then use this plus bonus when she returns? Basically does she have to be physically in the UK to apply?
    Thanks in advance!
    Not sure if this is going to right place.
    • bowlhead99
    • By bowlhead99 31st Mar 18, 4:31 PM
    • 7,970 Posts
    • 14,499 Thanks
    bowlhead99
    My daughter intends to buy a house within the next couple of years. She is not currently living in UK but will return home soon. My question is this: Can she apply for either ISA now and then use this plus bonus when she returns? Basically does she have to be physically in the UK to apply?
    Thanks in advance!
    Not sure if this is going to right place.
    Originally posted by davobur
    She doesn't have to be physically in the UK to apply, though most providers will expect it and she might have to jump through some further hoops to explain herself if she is not.

    She does however need to be UK tax resident for 2017/18 in order to subscribe to an ISA in 2017/18, and she needs to be UK resident in 2018/19 if she is going to subscribe to an ISA in 2018/19. When she opens the ISA she will have to declare that she is a UK tax resident for that year.

    If she can meet the criteria to be a UK tax resident and wants to be one, it's fine for her to go ahead and make that declaration. But she will then be exposed to paying UK tax on all her worldwide income and gains. She won't be able to say to HMRC, "hey hang on I'm not paying UK tax on my non-UK income, because I'm not a UK resident", when she has signed a document to declare that she definitely *is* a UK resident just to get access to an ISA.
    • Sydney85
    • By Sydney85 14th Apr 18, 2:52 PM
    • 1 Posts
    • 0 Thanks
    Sydney85
    Hi there,

    May someone knows answer for my question.
    I have HTB ISA account opened. Me and my wife are going to buy a new house soon. House full price is 290000 but we would like to use HTB Equity Loan so mortgage amount is 225000.
    Will we get tha ISA bonus or not? Does The government look on house price or mortgage amount?

    Regards
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