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Help to Buy to LISA
Miryhellboy
Posts: 2 Newbie
My son moved a help to buy ISA to a LISA November last year. Today he was told he cannot get the bonus because the LISA is less than a year old. Does the opening date of the help to buy ISA count towards the start date of the LISA? If not he effectively loses both bonuses.
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Comments
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No, a LISA can only be used without penalty from one year after the LISA itself was opened, the start date of a previous HTB doesn't come into it....0
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However remember that the HTB ISA closure paperwork which the old provider would have sent him upon completion of the transfer can be used to claim a HTB ISA bonus on the closing balance for a qualifying purchase for 12 months.
As such he may still be able to claim the HTB ISA bonus but would suffer a small withdrawal penalty above the LISA bonus (which he would have already received) if he needs to access the LISA money to complete the purchase.
If possible it would be best to claim the HTB bonus and transfer the LISA to a S&S provider (such as AJ Bell) to use as an investment towards retirement when it can be withdrawn without penalty at age 60.
That way he can have the bonus twice.
Alex.0 -
Thanks Alex. I thought that 1 year thing must have been an oversight. I can see from the government guidelines for conveyancers that the bonus on the Help to Buy portion on the ISA will still be available. That will take much of the issue away.0
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Miryhellboy wrote: »Thanks Alex. I thought that 1 year thing must have been an oversight. I can see from the government guidelines for conveyancers that the bonus on the Help to Buy portion on the ISA will still be available. That will take much of the issue away.
Yup I have suggested it to other people in the same situation and they have come back and confirmed their solicitor was able to claim the HTB ISA bonus despite transfering it all into a LISA.
Alex0
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