Lifetime ISAs guide
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Halifax will have provided the eligible amount to be put into the LISA without contributing to the LISA limit to HL.
As for the other HL account's value changing - is it invested?
I will take your word for it (you're the one with 1000 thanks haha).
The amount changing is not invested (yet). The £600 in the loyalty bonus account (I guess they had to put the £600 somewhere, so they put it there) has decreased to £595 for some unknown reason0 -
I figured out why it changed, I owe HL running costs, for the amount I have already invested! D'oh!0
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Part of me thinks that some potential Lifetime ISA providers are holding off launching in this transitional year to avoid having to faff about with the special rules applying in 2017/18 such as H2B ISA transfers (even though they don't have to accept them) and closing the LISA if there are any withdrawals this year.
I wonder what would happen if someone transferred a H2B ISA to another provider and then transferred to LISA. There wouldn't be a balance on 5th April 2017 on the new H2B ISA even though there was on the old one. How would they work that one out?0 -
Part of me thinks that some potential Lifetime ISA providers are holding off launching in this transitional year to avoid having to faff about with the special rules applying in 2017/18 such as H2B ISA transfers (even though they don't have to accept them) and closing the LISA if there are any withdrawals this year.
I wonder what would happen if someone transferred a H2B ISA to another provider and then transferred to LISA. There wouldn't be a balance on 5th April 2017 on the new H2B ISA even though there was on the old one. How would they work that one out?
Very possibly there is just so much to go wrong, let alone the amount of queries they would have to answer via phone/email.0 -
Okay, I'm sold on the LISA concept, even if I still find it confusing three months after opening one!
To this end I've just read through the kind and got muddled up about this statement:
"You can hold more than one LISA at any one time, provided that you only pay in to one at any time in each tax year (you can transfer the current year's money around, provided it's ALL transferred each time)."
So, I opened up a LISA with Nutmeg on 6th April with £100, and it's doing swimmingly well (currently worth £102
)
But, from the savings I had in my Nationwide, I transferred over £3000 to the Skipton Cash LISA when it opened!
So, have I broken the rules? :think:
Just to complicate matters, I held back £850 cos was looking to use that to 'top-up' my Nutmeg portfolio, or set up a separate pot.
Oh yeah and I have a H2B with Nationwide which I'm looking to transfer over in March 2018 to the Skipton one. If they let me! (Think I've got that part right!)
Would really appreciate some clarification!
p.s. just out of coincidence, today is my sister's birthday. No prizes to guess what her name is!! :rotfl:0 -
Did you transfer money from a Nationwide ISA into the Skipton LISA, using Skipton's ISA transfer process?jimbob0802 wrote: »So, I opened up a LISA with Nutmeg on 6th April with £100, and it's doing swimmingly well (currently worth £102 )
But, from the savings I had in my Nationwide, I transferred over £3000 to the Skipton Cash LISA when it opened!
So, have I broken the rules? :think:
If so, then you're OK, but if you paid into Skipton using money from a non-ISA savings account then it isn't an ISA transfer and so breaches the rules, as you can only pay new money into one LISA in any given tax year.
Edit: on reflection I think Ed-1 is right in post #829 that (even though it's now academic in this particular instance) this isn't OK after all!0 -
jimbob0802 wrote: »Okay, I'm sold on the LISA concept, even if I still find it confusing three months after opening one!
To this end I've just read through the kind and got muddled up about this statement:
"You can hold more than one LISA at any one time, provided that you only pay in to one at any time in each tax year (you can transfer the current year's money around, provided it's ALL transferred each time)."
So, I opened up a LISA with Nutmeg on 6th April with £100, and it's doing swimmingly well (currently worth £102 )
But, from the savings I had in my Nationwide, I transferred over £3000 to the Skipton Cash LISA when it opened!
So, have I broken the rules? :think:
Yes - as you've identified, you can't pay into 2 LISAs in the same tax year but can transfer previous LISA money to another LISA. There's only been one LISA tax year so far (the current one) so no-one can currently have money in more than one LISA.0 -
Did you transfer money from a Nationwide ISA into the Skipton LISA, using Skipton's ISA transfer process?
If so, then you're OK, but if you paid into Skipton using money from a non-ISA savings account then it isn't an ISA transfer and so breaches the rules, as you can only pay new money into one LISA in any given tax year.
No it's not OK as they've paid into 2 LISAs in the same year. Old ISA money still counts as new LISA money if transferred into LISA.0 -
Okay thanks for the replies but still confused. I'll be more comprehensive with what I did:
In chronological order:
1. I opened up a Stocks and Shares LISA with Nutmeg at the start of the tax year - to 'get the ball rolling', as Martin Lewis put it. I put £100 into it rather than the nominal £1.
2. When Skipton released their Cash LISA, I opened one up. Soon after, I transferred £3000 of funds from my Nationwide Flexclusive ISA to my Nationwide Flexdirect Current Account. At that point, I paid in £3000 into my Skipton Cash LISA as a Debit Card payment (i.e. from the Flexdirect Current Account).
That is the position I'm in. My goal all along has been to simply lock away £4000 of my savings into the LISA scheme, as to be eligible for the 25% bonus. As per the advice on MSE, I was going to transfer my Nationwide H2B ISA into a LISA in March of next year, as to keep the bonus I have on that at the moment (currently at £2200 and paying in £200 per month).
If I have broken the rules as indicated above, what's the impact? Is there no way round it all so I can reach my goal? I certainly don't have anywhere near the maximum of £20k of savings that can be saved in ISA's this tax year.
Thanks for your guidance: the LISA's seem overly bureaucratic for a mere laymen - I'm simply just a 30 something year old trying to get the most of out the little savings I have.0 -
jimbob0802 wrote: »2. When Skipton released their Cash LISA, I opened one up. Soon after, I transferred £3000 of funds from my Nationwide Flexclusive ISA to my Nationwide Flexdirect Current Account. At that point, I paid in £3000 into my Skipton Cash LISA as a Debit Card payment (i.e. from the Flexdirect Current Account).
This is when you broke the rules. There's no distinction between a stocks and shares LISA and a cash LISA like there is between a stocks and shares ISA and a cash ISA. You can pay into 1 each of the latter but only one LISA (whether it's cash or stocks and shares). You needed to transfer your Nutmeg LISA into Skipton so that you only paid into one LISA this tax year.
Your second LISA is currently likely to be voided by HMRC at the end of the tax year. To avoid this, transfer the Nutmeg LISA into Skipton.0
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