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    • nodoshleft
    • By nodoshleft 4th Jan 18, 10:15 PM
    • 1Posts
    • 0Thanks
    nodoshleft
    H2B into LISA
    • #1
    • 4th Jan 18, 10:15 PM
    H2B into LISA 4th Jan 18 at 10:15 PM
    Hi I have just opened a LISA with Skpton, if I transfer my previous years H2B contributions into this and leave my 2017/18 payments in my H2B ISA can I then put 4000 into my LISA and continue paying into my H2B to max out both for this year. I know I can only get the bonus on one.
Page 2
    • Ashen
    • By Ashen 9th Jan 18, 10:47 PM
    • 481 Posts
    • 334 Thanks
    Ashen
    "The impact on your LISA allowance of transferring a Help to Buy ISA in depends on when you contributed. All money contributed to a Help to Buy ISA before LISAs launched (ie, before 6 April 2017) can be transferred in without affecting your LISA allowance and you can get both the max 1,000 LISA bonus, plus the bonus on that Help to Buy ISA cash on top. Any money you contribute to the Help to Buy ISA after LISAs launch however will eat up your LISA allowance."

    The above paragraph was copied from Martin's page assisting with the technicalities of the Help to Buy Isa and Lifetime ISA.
    Originally posted by jamesunisaver
    I was reading this, and confused about the part that was bolded, because at first it appeared to contradict other advice given (i.e. that you can put 4000 into a LISA as well as 2400 into H2B this tax year, and also transfer only previous years H2B contributions to the LISA).

    However, I think that bold part must be in the context of money you contribute to H2B in 2017-18 *and* transfer? All very confusingly written...
    • eskbanker
    • By eskbanker 10th Jan 18, 12:01 AM
    • 7,446 Posts
    • 8,030 Thanks
    eskbanker
    I think that bold part must be in the context of money you contribute to H2B in 2017-18 *and* transfer?
    Originally posted by Ashen
    Yes, the first sentence sets the context for the second and third. Perhaps clearer if formatted as:
    The impact on your LISA allowance of transferring a Help to Buy ISA in depends on when you contributed:
    • All money contributed to a Help to Buy ISA before LISAs launched (ie, before 6 April 2017) can be transferred in without affecting your LISA allowance and you can get both the max 1,000 LISA bonus, plus the bonus on that Help to Buy ISA cash on top.

    • Any money you contribute to the Help to Buy ISA after LISAs launch however will eat up your LISA allowance.
    • Ashen
    • By Ashen 10th Jan 18, 12:51 AM
    • 481 Posts
    • 334 Thanks
    Ashen
    Thanks. I wish the MSE guide had set that out as a clear option at the outset, as it's all focused on best timings to transfer a H2B ISA, and doesn't make doing that apparent in the slightest - which has led to me sending off an ISA transfer form which now I just hope I've managed to cancel.
    • hbell86
    • By hbell86 27th Jan 18, 9:06 AM
    • 9 Posts
    • 1 Thanks
    hbell86
    Does the interest made in your H2B ISA in the 2017/18 tax year count towards your LISA allowance when you transfer it across to a LISA? Or is it just your physical contributions made this tax year that count towards your LISA allowance.
    • eskbanker
    • By eskbanker 27th Jan 18, 11:51 AM
    • 7,446 Posts
    • 8,030 Thanks
    eskbanker
    Does the interest made in your H2B ISA in the 2017/18 tax year count towards your LISA allowance when you transfer it across to a LISA? Or is it just your physical contributions made this tax year that count towards your LISA allowance.
    Originally posted by hbell86
    The rules state that interest earned on a HTB in 2017/18 does count towards your 4K LISA annual allowance when transferring, although as per post #8 above, theoretically any interest earned but not paid as at 5 April 2017 doesn't count, so HTB providers should differentiate between interest relating to 2016/17 and 2017/18 when transferring into a LISA.

    Having said that, some posters have reported that figures provided by HTB and/or LISA providers don't actually follow the official rules so it seems there is some scope for interpretation, so see what your providers tell you when you transfer and if you plan to top your LISA up to 4K post-transfer then base your figure on their answers....
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