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Transfer an existing ISA to a Lifetime ISA

Transferring into a Lifetime ISA

You can transfer a Lifetime, Help to Buy, Stocks and shares or cash ISA to an AJ Bell Youinvest Lifetime ISA. It’s free to open an account, and we won’t charge you anything to transfer in.

Transferring is easy. First, you’ll need to open a Lifetime ISA. If you’re aged between 18 and 39, a Lifetime ISA allows you to save up to £4,000 a year (until you turn 50), tax free and with the help of the government. Find out more about Lifetime ISAs

Benefits of a Lifetime ISA

  • A government bonus of 25%
  • Great investment ideas including AJ Bell Passive funds and our Favourite funds list
  • A wide range of investment choices, including funds and shares
  • Free to open, low dealing and custody charges
  • Manage your Lifetime ISA online and on our mobile app

Important information: A Lifetime ISA is not for everyone. If you withdraw money before age 60, other than to purchase your first home, you will pay a government withdrawal charge of 25%. This may mean you get back less from your LISA than you paid in. Also, if you choose to save in a Lifetime ISA instead of enrolling in, or contributing to, your workplace pension scheme you will miss out on the benefit of your employer’s contributions to that scheme and your current and future entitlement to means tested benefits may be affected. Read more on Lifetime ISA risks and the key features document.

Transferring into a Lifetime ISA

Help to Buy ISA
House

You can transfer your Help to Buy ISA into your Lifetime ISA and give yourself a helping hand getting onto the housing ladder.

To find out about transferring a Help to Buy ISA, please visit our Help to Buy to Lifetime ISA transfer page.

Lifetime ISA

If you already have a Lifetime ISA (LISA) with another provider, you can transfer the full value of this into an AJ Bell Youinvest Lifetime ISA.

How will this affect my ISA allowances?

Transferring an existing Lifetime ISA won’t be counted as a payment into your LISA, so it won’t use up your £4,000 annual payment limit. However, if you have already used up your £4,000 allowance, you can’t pay any more into your LISA once it’s been transferred.

As the payments you’ve made into your Lifetime ISA have already been counted in your overall ISA allowance of £20,000, the transfer won’t change the amount you have left of that.

Case study: Anna and Tom transfer their Lifetime ISAs

Anna has paid £4,000 into her Lifetime ISA. She’s used up all of her annual LISA allowance and, as she hasn’t subscribed into any other ISAs, she’s got £16,000 left of her ISA allowance.

She transfers her LISA to an AJ Bell Youinvest LISA. While this doesn’t count as another payment into the LISA, she’s still used up all her LISA allowance so can’t pay in any more into the AJ Bell Youinvest LISA. However, her ISA allowance has not been changed by the transfer, and she can still subscribe up to £16,000 into other types of ISAs.

Tom has paid £3,000 into his Lifetime ISA and £10,000 into a Stocks and shares ISA – meaning he has £1,000 left of his LISA allowance for this year, and £7,000 left overall of his ISA allowance. He transfers his Lifetime ISA to an AJ Bell Youinvest LISA. Once the transfer completes, he then pays in £1,000 into his AJ Bell Youinvest Lifetime ISA. This is fine as the transfer hasn’t counted as a payment into his LISA, and therefore hasn’t used up his LISA allowance, but since the payment, he has now used up all of his LISA allowance. He couldn’t, however, have continued paying into his Lifetime ISA at his previous provider now he’s transferred – all the payments from this tax year need to be kept in the same place.

£1,000 of his overall ISA allowance has been used by the payment made to the LISA after the transfer. However, the transfer hasn’t used up any of his ISA allowance, meaning he has £6,000 left to pay into other ISAs.

Before you transfer into an AJ Bell Youinvest Lifetime ISA, make sure you read the key features document, risks and charges and rates for our Lifetime ISA to make sure the transfer is right for you.

When you’re ready to transfer, the process is easy. Just open a LISA with us, and during the application process, we’ll ask for the details of the Lifetime ISA you want to transfer. You need to be aged under 40 to transfer a Lifetime ISA to us.

Open a Lifetime ISA Already have a Lifetime ISA with us? Log in to your account and choose transfers.
Stocks and shares ISA

You can transfer cash from a Stocks and shares ISA from another provider into an AJ Bell Youinvest Lifetime ISA, and you will receive the 25% government bonus on the amount transferred.

You can also transfer cash from an AJ Bell Youinvest Stocks and shares ISA to an AJ Bell Youinvest Lifetime ISA – you’ll need to open a Lifetime ISA or log in and then click on ‘Move cash between accounts’ on the ‘My account’ menu.

How will this affect my ISA allowances?

The transfer will count as a payment into the Lifetime ISA so you can only transfer in up to £4,000. If you’ve already made payments into your LISA, you can only transfer in the amount you have left of your annual LISA allowance.

As any payments you’ve made into your Stocks and shares ISA this tax year have already been counted in your overall ISA allowance of £20,000, the transfer won’t change the amount you have left of that.

If the value of your current year savings in your Stocks and shares ISA is more than £4,000, you won’t be able to transfer part of it over. This is because HMRC rules don’t allow you to split your current year subscriptions between ISAs. You could however transfer cash from any subscriptions you’ve made in previous years.

Case study: Chloe and James transfer Stocks and shares ISAs to Lifetime ISAs

Chloe has subscribed £3,000 into a Stocks and shares ISA in this tax year, and nothing into any other ISAs – so she has £17,000 left of her ISA allowance. She’s enjoyed some investment growth, so her Stocks and shares ISA is now worth £3,500 which she transfers to an AJ Bell Youinvest Lifetime ISA. This is counted as a payment into her Lifetime ISA, meaning she only has £500 left of her LISA allowance. However, the transfer has not used up any of her ISA allowance, she still has £17,000 left of that.

James has subscribed £5,000 into his Stocks and shares ISA in this tax year, and the value of it has remained the same. He has also subscribed £2,000 into a cash ISA, so he has £13,000 left of his ISA allowance. He hasn’t paid anything into his Lifetime ISA.

However, James can’t transfer the £5,000 from his Stocks and shares ISA to a Lifetime ISA, because it exceeds the annual LISA allowance and he can’t partially transfer just £4,000 because he can’t split his current year subscriptions between ISAs.

Luckily, James has been saving in his Stocks and shares ISA for a few years, and has £10,000 cash in the ISA which he’s subscribed in previous years. He can transfer £4,000 from those subscriptions into his Lifetime ISA. His overall ISA allowance hasn’t been affected by this transfer; he still has £13,000 left. He has however now used up his LISA allowance for the year.

As the transfer has to be done in cash, you’ll need to have the cash available in your Stocks and shares ISA.

Before you transfer into an AJ Bell Youinvest Lifetime ISA, make sure you read the key features document, risks and charges and rates for our Lifetime ISA to make sure the transfer is right for you.

When you’re ready to transfer, the process is easy. Just open a LISA with us, and during the application process, we’ll ask for the details of the Stocks and shares ISA you want to transfer.

Open a Lifetime ISA Already have a Lifetime ISA with us? Log in to your account and choose transfers.
Cash ISA

You can transfer a cash ISA from another provider into an AJ Bell Youinvest Lifetime ISA, and you will receive the 25% government bonus on the amount transferred.

How will this affect my ISA allowances?

The transfer will count as a payment into the Lifetime ISA so you can only transfer in up to £4,000. If you’ve already made payments into your LISA, you can only transfer the amount you have left of your annual LISA allowance.

As any payments you’ve made into your cash ISA this tax year have already been counted in your overall ISA allowance of £20,000, the transfer won’t change the amount you have left of that.

If the value of your current year savings in your cash ISA is more than £4,000, you won’t be able to transfer part of it over. This is because HMRC rules don’t allow you to split your current year subscriptions between ISAs. You could however transfer cash from any subscriptions you’ve made in previous years.

Case study: Jenny and Andy transfer cash ISAs to Lifetime ISAs

Jenny has subscribed £3,000 into a cash ISA in this tax year, and nothing into any other ISAs – so she has £17,000 left of her ISA allowance. She’s been paid some interest, so her cash ISA is now worth £3,100 which she transfers to an AJ Bell Youinvest Lifetime ISA. This is counted as a payment into her Lifetime ISA, so she only has £900 left of her LISA allowance. The transfer has not used up any of her ISA allowance however, she still has £17,000 left of that.

Andy has subscribed £5,000 into his cash ISA in this tax year, and the value of it has remained the same. He has also subscribed £2,000 into a Stocks and shares ISA, so he has £13,000 left of his ISA allowance. He hasn’t paid anything into his Lifetime ISA.

However, Andy can’t transfer the £5,000 from his cash ISA to a Lifetime ISA, because it exceeds the annual LISA allowance and he can’t partially transfer just £4,000 because he can’t split his current year subscriptions between ISAs.

Luckily, Andy has been saving in his cash ISA for a few years, and has £10,000 in the ISA which he’s subscribed in previous years. He can transfer £4,000 from those subscriptions into his Lifetime ISA. His overall ISA allowance hasn’t been affected by this transfer; he still has £13,000 left. He has however now used up his LISA allowance for the year.

Before you transfer into an AJ Bell Youinvest Lifetime ISA, make sure you read the key features document, risks and charges and rates for our Lifetime ISA to make sure the transfer is right for you.

When you’re ready to transfer, the process is easy. Just open a LISA with us, and during the application process, we’ll ask for the details of the cash ISA you want to transfer.

Open a Lifetime ISA Already have a Lifetime ISA with us? Log in to your account and choose transfers.

What you need to consider when transferring into a Lifetime ISA

  • The AJ Bell Youinvest Lifetime ISA has been designed for investing in shares and funds. Investments don’t offer the same security as cash and can fall in value – meaning you could get back less than you invest
  • You can only open an AJ Bell Youinvest Lifetime ISA if you are aged between 18 and 39
  • A Lifetime ISA must be funded for 12 months before you can use it to buy your first home
  • Unlike other types of ISA where you can withdraw some or all of your cash at any time, there are restrictions on withdrawing cash from a Lifetime ISA.
  • You’ll need to fund your Lifetime ISA in the same tax year you open it – otherwise we’ll need to close it. So if you intend to fund your LISA by transferring in, it’ll need to complete before then end of the tax year.

FAQs

More FAQs
  • Who can open a Lifetime ISA?

    To open a Lifetime ISA (LISA), you need to be aged at least 18 and under 40. Having opened a LISA account, you can keep paying in until the day before your 50th birthday.

    You won't be able to open a LISA if you're 40 or older, unless you’re transferring in an existing LISA from another provider. At the moment, if you're 40 or over, you can't do this with AJ Bell Youinvest, but you'll be able to later in 2018.

    LISAs can only be opened by individuals. And you must ordinarily be a resident of the UK, a Crown employee working overseas, or a spouse or dependant of a Crown employee.

  • What can I use the Lifetime ISA for?

    A Lifetime ISA (LISA) can be used to buy your first home, as long as it’s worth £450,000 or less, and you’re buying with a mortgage. If you buy a home with another first-time buyer, you can both use your Lifetime ISAs with the government bonus – but together you can buy a house only up to the value of £450,000.

    You can also use the LISA to save for retirement, and can withdraw your LISA in full from the age of 60. However, if you save in a LISA rather than enrolling in a qualifying scheme, occupational pension scheme or personal pension scheme, you may lose the benefit of contributions by an employer (if any) and your future entitlement to means-tested benefits may be affected.

    If you withdraw cash from your LISA for any other reason, except in the case of terminal illness, you’ll have to pay a 25% government withdrawal charge. This means that for every £100 you withdraw (the £80 you put in plus the £20 bonus), £25 would be deducted and you’d only get back £75 – less than the £80 you put in.

  • Can I open a Lifetime ISA alongside other ISAs?

    Yes, you can open a Lifetime ISA alongside any other ISAs you may hold (cash, stocks and shares, help to buy or innovative finance). But be careful not to exceed the overall annual ISA subscription limit of £20,000, which a LISA normally counts towards.

    You can also open more than one Lifetime ISA, but you can only pay in to one each tax year.

  • Can I move cash from my AJ Bell Youinvest Stocks and shares ISA or Dealing account to my Lifetime ISA?

    Yes, you can move cash from your Stocks and shares ISA or Dealing account to your Lifetime ISA. Simply log in and select 'Move cash between accounts' in your 'My account' menu. 

    If the value of your current year account in your Stocks and shares ISA is more than £4,000, you won’t be able to transfer part of it over. This is because you can’t split your current year subscriptions between ISAs. You could however partially transfer any subscriptions you’ve made in previous years. 

    Payments from other accounts to your Lifetime ISA will still count towards your annual £4,000 payment limit, so you'll need to be careful how much you transfer. 

  • When is the government bonus paid?

    The Lifetime ISA bonus is paid monthly, directly into your Lifetime ISA account. The bonus will be 25% of the amount you've paid into your Lifetime ISA that month.

  • When can I withdraw money from my Lifetime ISA?

    You can withdraw money from your Lifetime ISA (LISA) to fund the purchase of your first home, as long as it’s worth £450,000 or less, and you’re buying with a mortgage.

    You can also withdraw money from your Lifetime ISA when you’re 60 or older. If you withdraw cash from your LISA for any other reason, except in the case of terminal illness, you’ll have to pay a 25% government withdrawal charge. This means that for every £100 you withdraw (the £80 you put in plus the £20 bonus), £25 would be deducted and you’d only get back £75 – less than the £80 you put in.

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