HTB ISA to LISA - should I have done it already?
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Dangerous_Dave2k wrote: »If possible I'd like to get the £1400 that was in the HTB ISA by 5th April 2017 into a LISA - but apparently I cannot do this via Skipton before the new tax year. I'm trying to assess the dodginess of the work around that has been suggested, since I've not heard of AJ Bell (for all I know they could just run off with the cash), and I'm also not entirely sure what would be happening with any money put in their Stocks and Shares LISA (i.e. is it automatically invested and therefore at risk).
The only real risk with the AJ Bell workaround is that your HTB funds don't transfer before the end of the tax year, but at present you are still within AJ Bell's expected timeframe, so this is unlikely, and if it did happen you would be no worse off as you simply wouldn't get the bonus and not taking action has the same result.
AJ Bell have been operating since 1995, have around £40 billion in assets under administration and FSCS protection (£50,000 limit). They are not going to run off with your money.
Your funds would not be automatically invested in stocks and shares. They sit in your account as cash until you choose (or not) to invest them, so you don't need to worry about market volatility.0 -
Even within AJ Bell's timeline they have no control over how response the HTB ISA provider will be.
When I moved my SIPP from AJ Bell YouInvest to Halifax SD (administered by AJ Bell from the same building in Manchester) it took months of chasing and it was only when Halifax encouraged the two transfer departments in AJ Bell to talk to each other did any traction occur.
Alex0 -
Even within AJ Bell's timeline they have no control over how response the HTB ISA provider will be.
When I moved my SIPP from AJ Bell YouInvest to Halifax SD (administered by AJ Bell from the same building in Manchester) it took months of chasing and it was only when Halifax encouraged the two transfer departments in AJ Bell to talk to each other did any traction occur.
Alex
That's absolutely true, which is why I said "unlikely" to be a problem. As I said, however, if it doesn't complete in time then nothing has been lost.0 -
Thanks for all the information. I have opened an S&S LISA with AJ Bell, and printed off the HTB transfer form. I have ticked that I only want to transfer the balance as at 5th of April 2017. I'm assuming this is ok?
Then I assume I will need to top up the balance with an additional £4000 2017-18 allowance before 6th of April 2018 to max everything out?
The form asks me for the details of my current ISA manager, which is Barclays - but which address do you think I should use for this? Should it be the address of the branch that I opened it with, or Barclays' central "ISA Processing Team", or some other address?0 -
ValiantSon wrote: »As I said, however, if it doesn't complete in time then nothing has been lost.
Well for it doesn't complete in time there is the danger it will be treated as a HTB to LISA transfer under the rules applying next tax year in which case the HTB ISA balance would count towards the £4k contribution allowance for that year.0 -
Dangerous_Dave2k wrote: »Thanks for all the information. I have opened an S&S LISA with AJ Bell, and printed off the HTB transfer form. I have ticked that I only want to transfer the balance as at 5th of April 2017. I'm assuming this is ok?
Then I assume I will need to top up the balance with an additional £4000 2017-18 allowance before 6th of April 2018 to max everything out?
Yes sounds reasonable for what you are trying to achieve. Remember the LISA needs to be open at least 12 months from initial contribution before it can be used for a qualifying property purchase without incurring an early withdrawal penalty.Dangerous_Dave2k wrote: »The form asks me for the details of my current ISA manager, which is Barclays - but which address do you think I should use for this? Should it be the address of the branch that I opened it with, or Barclays' central "ISA Processing Team", or some other address?
Maybe phone Barclays in the morning to ask be best address to avoid unnecessary delays. It might be that whatever you write down AJ Bell will know the right address anyway from previous transfers they have processed.
Alex0 -
Well for it doesn't complete in time there is the danger it will be treated as a HTB to LISA transfer under the rules applying next tax year in which case the HTB ISA balance would count towards the £4k contribution allowance for that year.
I can't say for certain, but I would think that you would have reasonable grounds to challenge that as the transfer was requested nearly a month before the end of the tax year.0 -
ValiantSon wrote: »I can't say for certain, but I would think that you would have reasonable grounds to challenge that as the transfer was requested nearly a month before the end of the tax year.
The rules relate to when the transfer occurs rather than when it was requested. ISA managers are given 30 days to complete a transfer. Tricky.0 -
This discussion has been closed.
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