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Compare Lifetime ISAs /

Transfer a Help To Buy ISA

Find the best lifetime ISA provider to transfer your Help to Buy ISA.

Investment ISAs put your capital at risk & you may get back less than you originally invested

Lifetime ISA

from Nutmeg

  • Protection Scheme: FSCS
  • Fund Choice: A range of portfolios for your Lifetime ISA suited to your chosen risk level and investment style. Capital at risk.
  • Invest From: From £100 to £4,000.

Lifetime ISA

from Hargreaves Lansdown

Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Over 3,000 Funds, Investment Trusts, Bonds, ETF's or Cash. Capital at risk.
  • Invest From: £100 single or £25 per month

Lifetime ISA

from AJ Bell

Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Over 2,000 Funds, Shares and ETF's. Capital at risk.
  • Invest From: £25 per month

What is a Help to Buy ISA

Help to Buy ISAs are ISA accounts designed to help you save for your first house deposit.

The Help to Buy ISA Scheme has now been replaced by the Lifetime ISA, so you can no longer open a new Help to Buy ISA.

However, you can keep topping up an existing Help to Buy ISA until November 2029.

Help to Buy Bonus:

HMRC adds 25% to the value of your Help to Buy ISA when you withdraw it to fund your house deposit.

It must be used for:

  1. A first home
  2. A property worth no more than £250,000, or £450,000 in London
  3. You must intend to live at the property

You can also only save a maximum of £200 each month into a Help to Buy ISA, and you can only save a total amount of £12,000 in your ISA, giving you a government bonus of £3,000.

What is the difference between a Help to Buy ISA and a Lifetime ISA?

Lifetime ISA rules are similar to Help to Buy ISA rules, but there are a few main differences:

  1. The 25% bonus is applied the month after topping up, instead of when you withdraw
  2. A LISA can also be used in retirement at age 60, as well as for a house purchase, and the bonus still applies
  3. You can contribute up to £4,000 per year to a LISA, with HMRC adding £1,000 on top
  4. You can make lump sum contributions instead of being restricted to monthly direct debit top ups
  5. You can buy a property valued up to £450,000
  6. You can open a LISA up to the age of 39, and keep contributing up to the age of 50
  7. Both Stocks and Shares Lifetime ISAs and Cash Lifetime ISAs are available, giving you different investment options

Can you transfer a Help to Buy ISA into a Lifetime ISA?

Yes, you can.

  1. You can transfer up to £4,000 from a Help to Buy ISA in one tax year
  2. If you need to transfer more, you can split the transfer over multiple tax years
  3. Your transfer will use up your Lifetime ISA allowance, meaning you are capped at £4,000 per annum for both transfers and contributions
  4. You can transfer your Help to Buy ISA into either a Cash LISA or a Stocks and Shares LISA

You can also transfer normal Cash ISAs and Stocks and Shares ISAs into a Lifetime ISA. However, you are still limited to the £4,000 Lifetime ISA allowance which includes both transfers and contributions.

How do you transfer a Help to Buy ISA into a Lifetime ISA?

To transfer your Help to Buy ISA into a Lifetime ISA you’ll first need to identify a Lifetime ISA provider to invest with.

Once you’ve decided on who to open a Lifetime ISA with, you can do so either by contributing money with a debit card or submitting a transfer form.

A transfer form can be used to transfer both normal ISAs and Help to Buy ISAs into a Lifetime ISA, and your LISA provider will provide you with the form.

Once you’ve submitted your Help to Buy ISA transfer form, your LISA provider will carry out your transfer and notify you when it is complete.

When the ISAs reach your Lifetime ISA, the government bonus of 25% will be added in the following month.

Is it worth transferring a Help to Buy ISA into a Lifetime ISA?

There are a few main reasons you should consider transferring your Help to Buy ISA into a Lifetime ISA:

  1. Your 25% bonus is added to your account the following month instead of when you withdraw. This means you can get interest and/or investment growth on the 25% extra while you hold your LISA, which could be multiple years
  2. You can save over £12,000 where you’d normally be capped with a Help to Buy ISA
  3. You can buy a more valuable property, up to £450,000
  4. You can also use your funds for retirement if you don’t end up buying a property
  5. You can invest in Stocks and Shares LISAs as well as Cash LISAs, meaning you can benefit from investment growth and dividend income from your savings as long as you are aware of the risks involved 
Oliver Roylance-Smith
Edited by Oliver Roylance-Smith - ISA.co.uk

Frequently Asked Questions

No. You can switch providers with an ISA transfer if you wish. You can also contribute to other ISA providers in separate tax years.

Yes, any dividends, capital gains or withdrawals will be 100% tax-free from a LISA.

No. Your Lifetime ISA allowance counts towards your total annual allowance, so if you have contributed £4,000 to a LISA then you can only contribute a further £16,000 to a standard ISA.

Yes, you can open a LISA if you already have a Cash ISA or Stocks and Shares ISA.

You will be charged more than the bonus you get if you make a withdrawal against the permitted LISA rules. This is because 25% of your withdrawal after the added government bonus will total more than 25% of your original contribution.

You can also lose money in a Stocks and Shares LISA if your investments fall in value.

Yes, if you do not use all of your LISA value for your first home, then you can take the remainder at age 60 without being charged.

You cannot transfer a Lifetime ISA to a standard ISA as this would be a way of avoiding the 25% charge for unsolicited withdrawals.

For a LISA, you will be charged 20% of your withdrawal if it is not for a deposit on a first home or over the age of 60. This is to counteract the 25% bonus that HMRC will have initially added.

No, you can only contribute to your own LISA for tax purposes.

£4,000 per person for the 2021/22 tax year.

You can use LISA savings for your first home. If you own another home or have done in the past, either jointly or solely, then you are not eligible. This includes any property you have inherited.

The property you buy can also be valued at no more than £450,000.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.