You can transfer from an ISA to a Lifetime ISA but as Lifetime ISAs have unique benefits, there are conditions to bear in mind.
- You can only transfer up to £4,000 into a Lifetime ISA each year
- Your Lifetime ISA allowance makes up part of your overall annual ISA allowance – meaning you can’t subscribe more than a combined total of £20,000 to your Lifetime ISA or any other ISAs
Transfers into an EQi Lifetime ISA have to be as cash and not investments. Once your transfer is complete, you can repurchase any investments.
It is not possible to transfer part of your current year ISA subscription to a Lifetime ISA. This is because HMRC rules do not allow ISA subscriptions to be ‘split’. For example, if you have £6,000 in an ISA, you can’t transfer £4,000 from the ISA to a Lifetime ISA. You can also transfer ISAs from previous tax years up to the £4,000 allowance.
It is important to note you may be charged exit fees by your current provider.