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  • FIRST POST
    • pilotamx
    • By pilotamx 12th Mar 18, 8:23 PM
    • 35Posts
    • 0Thanks
    pilotamx
    Close and reopen LISA
    • #1
    • 12th Mar 18, 8:23 PM
    Close and reopen LISA 12th Mar 18 at 8:23 PM
    HI all,

    I am considering to move out from Nutmeg and join HL. I see moving ISA and LISA is not supported. Especially for LISA, can I just disinvest and reinvest? is this allowed/legal?

    Thanks
    S
Page 1
    • ValiantSon
    • By ValiantSon 12th Mar 18, 8:31 PM
    • 1,884 Posts
    • 1,749 Thanks
    ValiantSon
    • #2
    • 12th Mar 18, 8:31 PM
    • #2
    • 12th Mar 18, 8:31 PM
    Yes, if you want to you can sell your investments and then use the money to buy new investments with a new provider.

    If you have a LISA then selling your investments and then closing will result in the penalty of 25% being invoked. This would actually mean a loss of 6.25% on your original investment. I'd avoid this if I were you.

    You wouldn't be able to do an in specie transfer from Nutmeg to HL, but you should be able to do a cash transfer (thus keeping the ISA wrapper and also the government bonus for the LISA).
    • pilotamx
    • By pilotamx 12th Mar 18, 8:34 PM
    • 35 Posts
    • 0 Thanks
    pilotamx
    • #3
    • 12th Mar 18, 8:34 PM
    • #3
    • 12th Mar 18, 8:34 PM
    As far as I know, as I am still in the first LISA year and I haven't get bonus government yet, I can do it without any penalty. From 6th April, penalty will be applied.
    • bowlhead99
    • By bowlhead99 12th Mar 18, 8:43 PM
    • 7,835 Posts
    • 14,310 Thanks
    bowlhead99
    • #4
    • 12th Mar 18, 8:43 PM
    • #4
    • 12th Mar 18, 8:43 PM
    As far as I know, as I am still in the first LISA year and I haven't get bonus government yet, I can do it without any penalty. From 6th April, penalty will be applied.
    Originally posted by pilotamx
    Right, you don't get a penalty for withdrawing money, if there is no bonus applied for yet.

    But you still can't go over the maximum contribution limit for the year, and your total contributions will include what you put into Nutmeg (and then removed) as well as what you will want to put into HL before 6 April. If all of that is below 4k, no issue. If it's over (due to the double-counting, e.g. you had already put 3k into Nutmeg and want to put the 3k into HL which would be 6k - you would be better to approach HL and asking them to use an official transfer process to withdraw your assets from Nutmeg and pay them into a new LISA with them.

    As Valiant mentioned, you won't be able to transfer the actual investment assets from Nutmeg (the exact underlying mix of ETFs) but you can request that it's just transferred as cash. Assuming HL's systems are set up to accept transfers of cash from LISAs.
    • pilotamx
    • By pilotamx 12th Mar 18, 8:52 PM
    • 35 Posts
    • 0 Thanks
    pilotamx
    • #5
    • 12th Mar 18, 8:52 PM
    • #5
    • 12th Mar 18, 8:52 PM
    thanks for comprehensive explanation. Actually I have 4k in my LISA, so I understand I cannot do what I though.
    I have to understand better with HL. Apparently they do not make transfers from Nutmeg (cash or not).

    S
    • Alexland
    • By Alexland 12th Mar 18, 10:28 PM
    • 2,389 Posts
    • 1,791 Thanks
    Alexland
    • #6
    • 12th Mar 18, 10:28 PM
    • #6
    • 12th Mar 18, 10:28 PM
    Although LISA to LISA transfer is not an option on the HL website yet if you email them they will send you a PDF form to complete.

    Nutmeg do actually support the transfer of their ETFs but the fees involved would be uneconomic.
    • pilotamx
    • By pilotamx 12th Mar 18, 11:32 PM
    • 35 Posts
    • 0 Thanks
    pilotamx
    • #7
    • 12th Mar 18, 11:32 PM
    • #7
    • 12th Mar 18, 11:32 PM
    Interesting, I try to get in touch with them tomorrow so.
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