Help to Buy ISA guide

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  • Alexland
    Alexland Posts: 9,653 Forumite
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    MarkP80 wrote: »
    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?

    That's fine they can each use either although the use of the HTB ISA will limit the property value outside London.

    Alex
  • fsmith
    fsmith Posts: 1 Newbie
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    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
    eskbanker Posts: 31,066 Forumite
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    fsmith wrote: »
    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?
    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
    jshhghs Posts: 1 Newbie
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    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
    eskbanker Posts: 31,066 Forumite
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    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
    MonicaR Posts: 3 Newbie
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    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
    Rich2808 Posts: 1,332 Forumite
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    MonicaR wrote: »
    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

    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
    MonicaR Posts: 3 Newbie
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    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
    neilevans Posts: 2 Newbie
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    I have a 17
  • neilevans
    neilevans Posts: 2 Newbie
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    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.
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