Is this allow? H2B /LISA question?

Cccard
Cccard Posts: 9 Forumite
in ISAs & tax-free savings
Hi

I have got H2B with Halifax with about £6.8k in it. I have opened Nutmeg LISA with £100 back in may last year.

I have missed the Skipton deadline, so I am thinking max out the £4000 in nutmeg, open a new SS LISA, transfer the previous year H2B to it along with the £4k in nutmeg in that order before tax year end

Will this work? And more importantly is it allow?????
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Comments

  • Ed-1
    Ed-1 Posts: 3,888 Forumite
    First Anniversary Name Dropper First Post
    Cccard wrote: »
    Hi

    I have got H2B with Halifax with about £6.8k in it. I have opened Nutmeg LISA with £100 back in may last year.

    I have missed the Skipton deadline, so I am thinking max out the £4000 in nutmeg, open a new SS LISA, transfer the previous year H2B to it along with the £4k in nutmeg in that order before tax year end

    Will this work? And more importantly is it allow?????

    This would work as long as you have the LISA to LISA transfer completes by the end of the tax year as you can't contribute to 2 LISAs in the same tax year.
  • Cccard
    Cccard Posts: 9 Forumite
    Where would I have contribute to 2 LISAs in the same tax year???

    Transfer H2B to new SS LISA wouldn't count as one, would it ?????
  • Ed-1
    Ed-1 Posts: 3,888 Forumite
    First Anniversary Name Dropper First Post
    Cccard wrote: »
    Where would I have contribute to 2 LISAs in the same tax year???

    Transfer H2B to new SS LISA wouldn't count as one, would it ?????

    Yes. It just doesn't count towards the allowance.
  • Cccard
    Cccard Posts: 9 Forumite
    Infact maybe I will just transfer H2B to new SS LISA......
    Get the 25% bonus

    Also get the 25% bonus on my £4k nutmeg.

    Open Skipton cash LISA

    Transfer both SS LISA and still have my £4k allowance for 2018/19

    Will this work too????
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    I fear you have left it too late in the tax year for any transfer to work and leave you in the correct state at the end of the tax year.

    Page 140 in the ISA Manager guidance

    https://www.gov.uk/government/publications/guidance-notes-for-isa-managers

    9B.16 During 2017/18 tax year only, investors who are eligible to open a Lifetime ISA may make a single transfer of funds (including interest) up to the value built up in their Help to Buy ISA as at 5 April 2017 into a Lifetime ISA, without this amount counting towards the £4,000 Lifetime ISA payment limit. However, any such transfer must not breach the 'one Lifetime ISA per tax year' rule.
  • Cccard
    Cccard Posts: 9 Forumite
    So I cannot open a new SS LISA when I already got one nutmeg SS LISA???????
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Cccard wrote: »
    So I cannot open a new SS LISA when I already got one nutmeg SS LISA???????

    You can try to transfer your existing LISA and HTB ISA into a new provider LISA however it is so late in the tax year it may not leave you in a correct state.

    I would imagine HMRC would be fine on the LISA to LISA transfer occuring across the tax year boundary (they are happy if you chose to change provider). However they might view the HTB ISA transfer as occuring next tax year in which case it would count towards the LISA contribution limit for next tax year and any excess would be returned. Still you can try.

    Alex
  • Cccard
    Cccard Posts: 9 Forumite
    This is a nightmare!!!!!

    I will just transfer the HTB to my newly open moneybox and send the form off on Monday and see what happen.
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Cccard wrote: »
    I will just transfer the HTB to my newly open moneybox and send the form off on Monday and see what happen.

    If that's all you do you will be in clear breach of the rules and your most recently opened LISA will be invalid. If you are going to do this then at least initiate a transfer of the first LISA into the second one. Then cross your fingers and pray.
  • Cccard
    Cccard Posts: 9 Forumite
    Right I shall do H2B and Lisa onto the 2nd SS LISA.

    Sighssss
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