Help to Buy ISA vs LISA: Already Have Both — What Now?

It is entirely permitted under UK rules to hold both a Help to Buy ISA and a Lifetime ISA (LISA) at the same time, including making contributions to both within the same tax year. Many people opened one or both of these accounts as part of saving toward a first home purchase. However, holding both accounts introduces an explicit restriction on how the government bonuses attached to each account can be used. This article explains what the rules are, how the two accounts interact, and where common misunderstandings arise.

This article covers the rules as they apply in the United Kingdom. It does not constitute financial advice.

You can hold and pay into both a Help to Buy ISA and a LISA in the same tax year. LISA contributions count toward the £20,000 annual ISA allowance, while Help to Buy ISA contributions do not — the two accounts do not compete for the same allowance. However, if you are purchasing your first home, you can only claim the government bonus from one of the two accounts toward that purchase — not both. The bonus from the second account cannot be applied to the same property transaction. This is an explicit prohibition confirmed in scheme rules and GOV.UK guidance.

The Help to Buy ISA and the LISA are two separate government-backed savings schemes, each offering a 25% bonus on contributions, designed in part to help first-time buyers save for a property purchase. They were introduced at different times and operate under different legal frameworks, but they overlap in purpose and eligibility.

The Help to Buy ISA operates under HM Treasury Scheme Rules, administered by UK Asset Resolution Corporate Services. New accounts could not be opened after 30 November 2019, but existing holders can continue paying in until 30 November 2029. The bonus must be claimed by 1 December 2030.

The LISA is established under the Individual Savings Account (Amendment No. 2) Regulations 2017 (SI 2017/466), which amended the broader ISA regulations to create the LISA framework. A LISA can be opened by anyone aged 18 to 39 inclusive, and once open, contributions can continue until age 50.

Both accounts offer a 25% government bonus on contributions. The key restriction when holding both is straightforward: only one bonus can be used for a first home purchase. If a person uses their LISA bonus toward a property, they cannot also claim the Help to Buy ISA bonus for the same transaction, and vice versa. The funds saved in the unused account remain accessible, but the associated bonus for that account cannot be applied to the same purchase.

Understanding the interaction between both accounts requires familiarity with the specific rules governing each one.

Help to Buy ISA contribution rules

Contributions are capped at up to £1,200 in the first calendar month the account is funded, and up to £200 per calendar month thereafter. Unused monthly allowances cannot be carried forward. The minimum closing balance to qualify for any bonus is £1,600 (yielding a £400 bonus). The maximum bonus-eligible balance is £12,000 (yielding the maximum £3,000 bonus). Balances above £12,000 do not attract any additional bonus.

LISA contribution rules

The annual contribution limit is £4,000 per tax year (running 6 April to 5 April). The government bonus is 25% of contributions, up to a maximum of £1,000 per tax year. LISA contributions count toward the overall £20,000 annual ISA allowance for the relevant tax year.

Property price caps

These differ between the two accounts. The LISA has a single UK-wide property price cap of £450,000. The Help to Buy ISA applies a cap of £250,000 for properties outside London, and £450,000 for properties within London (as defined by specific borough lists in the Scheme Rules). For shared ownership purchases using a Help to Buy ISA, the full market value of the property applies — not just the share being purchased.

LISA 12-month holding period

A LISA must have been open for at least 12 months after the date of the first payment into it before funds can be withdrawn for a first home purchase without incurring the 25% withdrawal charge. This is defined in Regulation 31, Schedule, Paragraph 6(11) of SI 2017/466. The 12 months runs from the date of the first payment, not from the date the account was opened — a distinction that matters if there is a gap between opening and first funding. If funds are transferred from one LISA to another, the original first-payment date is preserved and the 12-month clock is not reset. However, closing a LISA and opening a new one starts the 12-month period afresh from the date of the first payment into the new account.

Help to Buy ISA bonus claim process

The Help to Buy ISA bonus is not paid into the account directly. Instead, after the account is closed, the conveyancer submits a claim for the bonus, which is paid to the conveyancer's client account between exchange and completion. The bonus cannot be used as an exchange deposit. The bonus must be claimed within 12 months of account closure. If the bonus is paid but not applied to a purchase within 3 months, it must be returned to the Administrator.

LISA bonus payment timing

From the 2018/19 tax year onward, LISA bonuses are paid monthly based on contributions made in that month. In the 2017/18 tax year, the bonus was paid annually at the tax year end. The exact timing of bonus payment after a contribution may vary by provider.

Overall ISA annual limit

The total annual contribution across all ISA types is £20,000 for the 2025/26 tax year. LISA contributions count toward this overall limit and therefore reduce the remaining allowance available for other ISA types. Help to Buy ISAs are ISA-based products but operate under separate scheme rules with their own monthly contribution limits, rather than the £20,000 annual ISA subscription framework. Help to Buy ISA contributions do not reduce the £20,000 allowance available for Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, or LISAs.

"Can I use both bonuses for the same property?"

No. This is the single most important rule when holding both accounts. You can use the bonus from one account only. The bonus from the second account cannot be claimed for the same property purchase. This applies regardless of whether the purchase is sole or joint.

"Does paying into both accounts in the same year cause any problems?"

No. You are permitted to contribute to both a Help to Buy ISA and a LISA within the same tax year. The restriction applies only to the use of the bonuses at the point of purchasing a property — not to the act of saving into both accounts.

"When does the LISA 12-month clock start?"

It starts from the date of the first payment into the LISA, not from the date the account was opened. If someone opens a LISA but does not make a payment for several months, the 12-month period does not begin until that first payment is made. If funds are transferred from another LISA, the original first payment date is retained.

"Can I transfer my Help to Buy ISA into my LISA?"

Transfers from a Help to Buy ISA to a LISA are permitted. However, transferred funds count toward the £4,000 annual LISA contribution limit. There was a one-time exception in the 2017/18 tax year: Help to Buy ISA funds saved before 6 April 2017 could be transferred to a LISA without counting toward the annual LISA limit. This transitional arrangement ended on 5 April 2018 and is no longer available. Contributions made to a Help to Buy ISA on or after 6 April 2017 that were transferred to a LISA did count toward the LISA annual limit even during 2017/18. ISA regulations require transfers to be completed within standard regulatory timeframes (typically up to 30 days), subject to provider processes.

"Can I transfer LISA funds to a Help to Buy ISA?"

The 25% withdrawal charge applies to any LISA withdrawal not qualifying as an authorised withdrawal (i.e., not for a qualifying first home purchase or at age 60+). A transfer from a LISA to a Help to Buy ISA would trigger this charge.

"What happens to the Help to Buy ISA bonus timing?"

The Help to Buy ISA bonus is not available at exchange. It is paid to the conveyancer between exchange and completion. This is a frequent source of confusion for those expecting to use the bonus as part of their upfront deposit.

Joint purchases

If two first-time buyers are purchasing a property together, each can use their own LISA or their own Help to Buy ISA bonus toward the same purchase. Each bonus is claimed separately. Each buyer must individually meet first-time buyer conditions — one buyer having previously owned a property invalidates their own bonus entitlement but does not affect the other buyer's eligibility to claim their bonus. The relevant property price cap still applies to the full purchase price of the property, regardless of how many accounts are being used.

Forces personnel

Members of the Regular Forces or Reserve Forces (or their spouses or civil partners) who are unable to occupy a property immediately may use LISA funds to purchase a property with a Buy-to-Let mortgage, provided they intend to occupy the property as their main residence in the future. This is an exception to the standard requirement that a LISA-funded purchase must not involve a Buy-to-Let mortgage. This exception is set out in SI 2017/466, Regulation 31, Schedule, Paragraph 6(8).

Crown employees serving overseas

Individuals who are not UK residents may, in most cases, qualify for a Help to Buy ISA or LISA if they are Crown employees serving overseas, or are married to or in a civil partnership with such employees. Specific eligibility verification may be required, as this is based on provisions referencing Section 28 of the Income Tax (Earnings and Pensions) Act 2003.

Terminal illness

LISA withdrawals are permitted without charge if the account holder is terminally ill with less than 12 months to live. This requires written evidence from a registered medical practitioner.

Failed property purchase and Help to Buy ISA reinstatement

If a property purchase falls through after a Help to Buy ISA has been closed, the account can be reinstated within 12 months of the closure date using a Purchase Failure Notice. The full closing balance can be re-deposited without counting toward annual ISA limits.

LISA unauthorised withdrawal charge

Withdrawals from a LISA that do not qualify as authorised (for a first home meeting all criteria, or at age 60+) are subject to a 25% withdrawal charge on the amount withdrawn. Because the charge is applied to the total amount including the bonus, the net effect may result in receiving less than the original contribution amount.

For someone holding both accounts, the central practical consideration is that only one government bonus can be applied to a first home purchase. The decision about which bonus to use — and what happens to the funds in the other account — depends on the specific circumstances of the purchase, including the property price, the amounts saved, and which account's property price cap is met.

The Help to Buy ISA bonus (maximum £3,000) is claimed through the conveyancer after account closure and is only available between exchange and completion. The LISA bonus (maximum £1,000 per tax year) is added to the account on an ongoing basis as contributions are made. The two schemes have different property price caps: the Help to Buy ISA distinguishes between London (£450,000) and outside London (£250,000), while the LISA applies a single UK-wide cap of £450,000.

Funds in the account whose bonus is not used for the purchase remain the property of the account holder. Help to Buy ISA savings can be withdrawn at any time (though this closes the account). LISA funds not used for a qualifying purpose are subject to the 25% withdrawal charge if accessed before age 60, unless a qualifying exception applies.

The LISA has a 12-month holding period from the date of first payment before funds can be used for a home purchase without charge. The Help to Buy ISA has no equivalent statutory holding period confirmed in primary sources. However, the account must be closed in order to claim the bonus, and the bonus is only paid after closure — between exchange and completion. The bonus cannot be used as an exchange deposit.

Transfers between accounts are possible in one direction without penalty: Help to Buy ISA funds can be transferred into a LISA, though transferred amounts count toward the £4,000 annual LISA limit. Transferring in the opposite direction — from LISA to Help to Buy ISA — triggers the 25% LISA withdrawal charge.

Can I hold both a Help to Buy ISA and a LISA at the same time?

Yes. There is no restriction on holding both accounts simultaneously, and you can contribute to both within the same tax year. The accounts can be held with different providers.

Can I use both government bonuses toward the same property?

No. When purchasing a first home, the government bonus can only be claimed from one of the two accounts. The bonus from the second account cannot be used for the same property purchase.

What is the LISA property price cap?

The LISA has a UK-wide property price cap of £450,000. The property must be purchased with a mortgage.

What is the Help to Buy ISA property price cap?

The cap is £250,000 for properties outside London and £450,000 for properties within London boroughs as defined in the Scheme Rules. For shared ownership, the full market value of the property is used, not just the share being purchased.

How long must a LISA be open before I can use it for a home purchase?

The LISA must have been open for at least 12 months from the date of the first payment into it — not from the date the account was opened. This is a statutory requirement defined in SI 2017/466.

Can I still pay into my Help to Buy ISA?

New accounts could not be opened after 30 November 2019. However, existing account holders can continue to make contributions until 30 November 2029. The bonus must be claimed by 1 December 2030.

What is the LISA withdrawal charge?

Withdrawals that do not qualify as authorised (for a first home meeting all criteria, or at age 60+) are subject to a 25% charge on the amount withdrawn. This may result in receiving back less than the amount originally contributed.

What happens if my property purchase falls through after I close my Help to Buy ISA?

The Help to Buy ISA can be reinstated within 12 months of the account closure date by using a Purchase Failure Notice. The full closing balance can be re-deposited without counting toward annual ISA limits.

Can I transfer my Help to Buy ISA into my LISA?

Yes. Transfers from a Help to Buy ISA to a LISA are permitted, but the transferred amount counts toward the £4,000 annual LISA contribution limit. A one-time exception in the 2017/18 tax year allowed pre-April 2017 Help to Buy ISA savings to transfer without counting toward the LISA limit, but this is no longer available.

What is the maximum LISA bonus I could receive over a lifetime?

The figure is often quoted as approximately £33,000, based on the assumption of maximum £4,000 contributions every year from age 18 to 50, though HMRC does not publish a formal lifetime cap. The actual amount received depends on individual contribution history.

• Holding both a Help to Buy ISA and a LISA is permitted, and contributing to both in the same tax year is allowed.
• The critical restriction is that only one government bonus can be used toward a first home purchase — the bonus from the second account cannot be claimed for the same transaction.
• The LISA has a UK-wide property price cap of £450,000 and a 12-month holding period from the date of first payment.
• The Help to Buy ISA has property price caps of £250,000 (outside London) and £450,000 (within London), with contributions permitted until 30 November 2029 and a final bonus claim deadline of 1 December 2030.
• Transferring Help to Buy ISA funds into a LISA is possible but counts toward the £4,000 annual LISA limit, while transferring in the opposite direction triggers the 25% LISA withdrawal charge.
• For joint purchases, each first-time buyer can use their own account's bonus, though the property price cap applies to the full purchase price regardless of how many accounts are involved.

Related: LISA Bonus Not Paid? Why It Happens | How to Move a LISA Between Providers | ISA Allowance Rules.