The Government has announced it will be introducing a new Lifetime ISA, providing savers with the flexibility to save towards a first home and retirement at the same time.
Savers will be able to transfer savings from other ISAs as one way of funding their Lifetime ISA. These contributions will count towards the £4,000 Lifetime ISA limit and will receive a bonus. In line with existing rules, transfers from previous years’ ISA contributions will not count towards that year’s £20,000 overall ISA limit.
During the 2017-18 tax year only, those with a Help to Buy: ISA will be able to transfer in the savings they have built up before 6 April 2017 to the Lifetime ISA, and still save an additional £4,000 into a Lifetime ISA in that year. This means the whole amount will benefit from the 25% government bonus. Individuals will not be able to use a government bonus from both a Help to Buy: ISA and a Lifetime ISA to buy their first home.