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    Can you pay into 2 ISA's in a tax year?

    I thought that this is not allowed.

    I currently have a Help to Buy ISA and paying in £200 monthly. I was thinking of opening a Lifetime ISA on 6th April and putting £1,600 in and continuing the Help to Buy monthly pay in.

    Then on 5th April 2018 (or before to be safe it goes through) transferring Help to Buy ISA into Lifetime ISA.

    Would this not conflict with not being allowed to pay into 2 ISA's in a tax year?

    Is this what is suggested here on Moneysavingexpert;

    blog.moneysavingexpert.com/201…84/

    Does this not suggest that if you put £1 or £1,600 (doesn't matter) into Lifetime ISA at any time between 6th April 2017 - 6th April 2018, then you can't continue to paying into Help to Buy as this would conflict?

    8 Comments

    You can transfer between the types of Isa via the transfer service between banks but you can't pay into two types of ISA separately yourself in the same tax year. But I don't think you'll get the bonus if you withdraw the funds from a Help to Buy Isa early. So there would be no point in having it if you do that.
    Edited by: "mtuk1" 4th Mar

    I believe you can have more than one ISA in the same year if they are with the same provider ,but not with different providers .You can have a stocks and shares ISA with one provider and a savings ISA with another provider as long as you don't exceed your total allowance .

    Original Poster

    rogparki

    I believe you can have more than one ISA in the same year if they are … I believe you can have more than one ISA in the same year if they are with the same provider ,but not with different providers .You can have a stocks and shares ISA with one provider and a savings ISA with another provider as long as you don't exceed your total allowance .



    Thanks. It says this on Moneysavingexpert;

    'You can have multiple ISAs, but you can open only one cash ISA in each tax year.
    So, if you have opened a cash ISA since April 6, 2016, you cannot open another one until April 6, 2017.'

    Original Poster

    mtuk1

    You can transfer between the types of Isa via the transfer service … You can transfer between the types of Isa via the transfer service between banks but you can't pay into two types of ISA separately yourself in the same tax year. But I don't think you'll get the bonus if you withdraw the funds from a Help to Buy Isa early. So there would be no point in having it if you do that.



    Thanks. Thought so but doesn't rule 4 in link above suggest breaking this rule;

    Rule no. 4 – Unsure when you’ll buy? Max out a Help to Buy ISA and put £1 in a LISA. Again, there’s a schedule to follow to max this out…
    – Open a top Help to Buy ISA now and save to the max in it.
    – On 6 April 2017 open a LISA with only £1. That way the clock has started on the ‘you must have held it a year’ rule.
    – If you’ve more savings to put away, use normal top savings accounts.
    – Buy before April 2018? Just use the Help to Buy ISA (as you can’t use the LISA until you’ve had it a year). And accept you’ve £1 locked in the LISA (or withdraw it and pay the penalty).
    – In March 2018 (before the tax year ends) if you’re not close to buying, transfer the Help to Buy ISA into the LISA. And also take any money out of normal savings to put in the LISA up to £1,600 (the LISA limit minus £2,400 – a year’s maximum Help to Buy contributions). This way you’ll have maxed out your contributions for when you buy (if you aren’t convinced you’ll definitely buy at some point, stick with a Help to Buy ISA, it’s safer).

    It says put £1 into Lifetime ISA in new tax year and then transfer Help to Buy into Lifetime plus £1,599 in savings so £1,600 cash + £2,400 Help to Buy to make up the £4,000 limit.

    Doesn't this suggest that before end of 2017-2018 tax year that you are still paying in to Help to Buy as £2,400 of the £4,000 limit is made up of the Help to Buy?
    So isn't this a conflict as you've paid into Lifetime and Help to Buy in one tax year?

    whoMODStheMODS

    Thanks. Thought so but doesn't rule 4 in link above suggest breaking this … Thanks. Thought so but doesn't rule 4 in link above suggest breaking this rule;Rule no. 4 – Unsure when you’ll buy? Max out a Help to Buy ISA and put £1 in a LISA. Again, there’s a schedule to follow to max this out…– Open a top Help to Buy ISA now and save to the max in it.– On 6 April 2017 open a LISA with only £1. That way the clock has started on the ‘you must have held it a year’ rule.– If you’ve more savings to put away, use normal top savings accounts.– Buy before April 2018? Just use the Help to Buy ISA (as you can’t use the LISA until you’ve had it a year). And accept you’ve £1 locked in the LISA (or withdraw it and pay the penalty).– In March 2018 (before the tax year ends) if you’re not close to buying, transfer the Help to Buy ISA into the LISA. And also take any money out of normal savings to put in the LISA up to £1,600 (the LISA limit minus £2,400 – a year’s maximum Help to Buy contributions). This way you’ll have maxed out your contributions for when you buy (if you aren’t convinced you’ll definitely buy at some point, stick with a Help to Buy ISA, it’s safer).It says put £1 into Lifetime ISA in new tax year and then transfer Help to Buy into Lifetime plus £1,599 in savings so £1,600 cash + £2,400 Help to Buy to make up the £4,000 limit. Doesn't this suggest that before end of 2017-2018 tax year that you are still paying in to Help to Buy as £2,400 of the £4,000 limit is made up of the Help to Buy? So isn't this a conflict as you've paid into Lifetime and Help to Buy in one tax year?



    Yes but they're talking about opening them in different tax years the way I interpret it.

    Original Poster

    mtuk1

    Yes but they're talking about opening them in different tax years the way … Yes but they're talking about opening them in different tax years the way I interpret it.



    Thanks. I understand that but doesnt it also suggest that you pay into lifetime and help to buy in same tax year as well?

    As far as I know you can subscribe into one of each type of isa providing the entire amount you pay in does not exceed the maximum permitted.

    whoMODStheMODS

    Thanks. I understand that but doesnt it also suggest that you pay into … Thanks. I understand that but doesnt it also suggest that you pay into lifetime and help to buy in same tax year as well?



    No. You can't pay into two cash isas in one tax year. You can transfer between two types of cash isa which is what is being referred to but the bank has to do the transfer.
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