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    • TheSamHughes
    • By TheSamHughes 7th Sep 17, 10:13 PM
    • 1Posts
    • 0Thanks
    HTB ISA to LISA for pending purchase
    • #1
    • 7th Sep 17, 10:13 PM
    HTB ISA to LISA for pending purchase 7th Sep 17 at 10:13 PM
    Hi All,

    I have been saving into my help to buy isa for a while now and have about 4600 in the account.
    Ive just been reading online to see what the procedure is for getting the bonus and noticed that it states its only paid for a property less then 250k. Which is a problem as the property Ive put an offer in for is 285k. So my question is should I transfer my HTB ISA into a LISA so that the property limit is 450 and I will still be eligible for the government bonus? If I do so is their a minimum time before I can width-draw the balance? I would hope because the money has been moved from one ISA to another I wouldn't have to wait a full year. Can anyone clear this up for me and offer any advice?

    Thanks in advance
    Last edited by TheSamHughes; 07-09-2017 at 10:22 PM.
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    • eskbanker
    • By eskbanker 7th Sep 17, 11:35 PM
    • 7,096 Posts
    • 7,522 Thanks
    • #2
    • 7th Sep 17, 11:35 PM
    • #2
    • 7th Sep 17, 11:35 PM
    Unfortunately the LISA one-year rule isn't circumvented by transferring in from another type of ISA, so if you open a LISA now then you wouldn't be able to withdraw any money without penalty for a full year from the date of opening it, regardless of where that money came from, as per clause 9B.43a of the official HMRC rules:
    A charge-free withdrawal for a first time residential purpose can only be made from a Lifetime ISA that has been open for at least 12 months after the date of first payment into it.
    Unless the property you're looking at is within London and its boroughs (in which case the maximum value for HTB purposes is 450K), it looks like you're going to have to forego the 25% bonus I'm afraid....
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