The Martin Lewis Podcast Question Time: Help to Buy ISA v LISA? Sell shares each year to use Capital Gains allowance? Broken broadband compensation
Jan 26, 2026
Clear comparisons of Help to Buy ISA versus Lifetime ISA rules and when to transfer funds. Practical talk about using annual capital gains allowances and the risks of selling and rebuying shares. Guidance on broadband outage rights and how to seek compensation. Explanation of your rights if a phone contract is hiked and when you can exit penalty free.
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When To Move Help To Buy Funds
- If you have both a Help to Buy ISA and a Lifetime ISA, keep whichever avoids penalties unless you will definitely buy a qualifying property under £450,000.
- Transfer Help to Buy funds into a LISA only if the LISA has been open a year and you will gain more bonus via the LISA's £4,000 yearly allowance.
Penalty Trade-Off Between ISA Types
- Help to Buy ISAs let you withdraw anytime without penalty but you won't get the 25% bonus if not used for a qualifying property.
- Lifetime ISAs impose an effective 6.25% loss on withdrawals taken early that aren't for a qualifying purchase or age 60 withdrawals.
Calculate Bonus By Timing Contributions
- Assess how long until you buy and whether the LISA's higher annual £4,000 contribution will let you get a bigger government bonus than staying in Help to Buy.
- Remember Help to Buy has a £12,000 cap and LISA contributions are limited per tax year, so timing affects total bonus received.