Particle.news
Download on the App Store

Martin Lewis Warns ISA Savers After Provider Blocks Partial Transfer to Lifetime ISA

He says some providers set rules that are tighter than official ISA regulations.

Overview

  • A saver reported a failed request to move part of their current tax‑year ISA into a Lifetime ISA and shared a screenshot of the refusal.
  • The provider’s message cited the previous provider’s rules, which did not allow partial transfers into a LISA for current‑year subscriptions.
  • Martin Lewis responded that providers can impose stricter terms than the headline ISA rules, so the process depends on each firm’s policies.
  • A LISA lets people put in up to £4,000 a year and get a 25% government bonus, with penalty‑free access for a first home or from age 60.
  • From April 2027, only £12,000 of the annual ISA limit will be freely allocated and £8,000 must go to stocks and shares ISAs, with those aged 65 and over exempt, so savers should check transfer rules with both sending and receiving providers before they act.