Lifetime ISA and Help to Buy ISA Numba-1-starsz


My partner and I are saving for a house, we both have a Help to Buy ISA which we opened this tax year. We are both wanting to open a Lifetime ISA in the next tax year and use the bonus from that towards our first home.

We were wondering whether we would be able to continue paying into our Help to Buy ISA (£200 monthly) and pay £335 monthly into our LISA, so by time it came for us to buy in May 2018 we had the full £4,000 in our LISA and could transfer our Help to Buy ISA over on April 5th 2018 to have ~£7,000 each.

Can you pay into 2 ISAs in the same tax year?

From April there will be four types of ISA and you can pay into each of them, up to a total of £20,000. however you can only pay into one of each type (except when you transfer), and there are lower limits on HTB ISAs and LISAs, in particular, anything you pay into an HTB ISA reduces the limit available for a LISA, so you can only pay a maximum of £4000 into the LISA and HTB combined in 2017/8, so your plan won't work. You can transfer your HTB anytime in 2017/8 and therefore get the bonus in April 2018, instead of waiting until you actually buy, but note that you have to have held the LISA for a year before you get the bonus.

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