How to transfer your Lifetime ISA

Key takeaways

• You can switch LISA providers at any time without resetting your 12-month "time to buy" clock.
• A standard transfer typically takes 4–6 weeks to complete, but some can take less than this.
• LISA-to-LISA transfers do not count toward your £4,000 annual allowance, allowing you to move your full balance.
• Help to Buy: Transfers from a Help to Buy ISA do count toward your annual £4,000 LISA limit.
• LISAs are non-transferable between people; moving funds to another person requires a withdrawal and a 25% penalty.

Can you transfer a Lifetime ISA to another provider?

Yes, you can transfer a Lifetime ISA from your current provider to another, and you have the flexibility to choose the provider that best suits your needs. It normally takes years to save for a first home, so being restricted to the same provider for that entire time could be limiting. Just like with current accounts, the Lifetime ISA you choose at first might not be the one you want to stick with for the long term.

How to transfer a Lifetime ISA

If you already have a Lifetime ISA with another provider, moving it elsewhere is straightforward. The exact steps vary between providers, but here’s what the process looks like with the Tembo Lifetime ISA:

1. Download our award-winning app and follow the sign-up process. During the sign-up journey, we’ll ask you if you have a Lifetime ISA already. If you say yes and you want to transfer, you can then enter the details of your existing LISA directly into the app. You'll need to know your current providers' details and your account details. The entire process is digital, making it quick and convenient.
2. We then handle the transfer process with your current provider. This can take 4-6 weeks, depending on your current provider's processing time.

This process works the same if you have a Stocks & Shares Lifetime ISA with another provider and want to transfer your funds to our Cash Lifetime ISA. It also works on the flip side if you have a Cash LISA elsewhere but want to switch that to a Tembo Stocks & Shares LISA when you transfer.

Related topic: How to transfer a Help to Buy ISA to a Lifetime ISA

Why switch your Lifetime ISA to Tembo?

Tembo is built for first-time buyers, from your first £1 saved to getting the keys to your first home. 

If you’re still saving, our Cash Lifetime ISA offers a market-leading 4.30% AER (variable). Over five years, that’s hundreds more in interest compared to the next best available rate, helping you grow your deposit faster. 

But Tembo is more than just a savings provider. We’re an award-winning mortgage and savings platform designed to support every step of the homebuying journey. Through the Tembo app, you can track not only your progress through a personalised homebuying plan, but also discover your best mortgage options from +100 lenders. Then, when the time is right, our award-winning team of mortgage advisors can help you apply for your first mortgage, with your own dedicated team at each step.

How long does a Lifetime ISA transfer take?

It takes around 4-6 weeks for your savings to be transferred from your current Lifetime ISA provider to your new one, but some transfers can take less than this. This is because your new provider has to do the paperwork at their end, and then your current provider has to transfer the funds. Some providers are quicker at transferring funds than others, but your money stays safe and secure throughout the process.

With the Tembo app, you’ll be able to easily see when the money drops in your account, and we’ll also send you an email when you're all set.

Does switching providers reset your 12-month Lifetime ISA timer?

Switching LISA providers doesn't affect your eligibility timeline for purchasing a home. You have to have your Lifetime ISA open for 12 months before you can use it penalty-free to buy your first home. The 12-month timer does not reset when switching LISA providers as long as you don't contribute funds to your Tembo Lifetime ISA until the transfer is complete.

• The property purchase price must be £450,000 or less.
• The purchase must be completed with a mortgage.
• The funds must be claimed by a conveyancer or solicitor as part of the purchase.
• The buyer must be a first-time buyer and intend to live in the property.

Can I transfer a Lifetime ISA after I turn 40?

Yes. While a Lifetime ISA cannot be opened after age 40, an existing Lifetime ISA can still be transferred between providers. Contributions can typically continue until age 50, in line with Lifetime ISA rules.

What if you transfer more than the £4,000 annual LISA limit?

As long as you are transferring your Lifetime ISA funds to another Lifetime ISA, you can move your full balance as the transfer doesn’t count toward your £4,000 annual allowance. Moving money from a Lifetime ISA into any other ISA would count as a withdrawal and trigger the government’s 25 % charge, effectively reducing your balance.

Please note: At the moment, Tembo doesn’t support transfers from other account types, such as a Help to Buy ISA, into a Lifetime ISA. We only accept LISA-to-LISA transfers.

To move money from a Help to Buy ISA (or another type of ISA) into a Tembo Lifetime ISA, account holders would need to follow these steps:

1. Withdraw the funds from your Help to Buy ISA (Account holders should check with their provider first, as withdrawal rules or government conditions may apply.)
2. Add the funds to your Tembo Lifetime ISA. You can do this via direct debit or a one-off contribution through the Tembo app.

What happens to my Lifetime ISA if I move abroad?

A Lifetime ISA can usually stay open if the account holder moves abroad, and the existing balance can remain invested or continue earning interest (depending on the provider). However, once an account holder is no longer a UK resident for tax purposes, new contributions typically cannot be made until UK residency resumes, and government bonuses are not paid on ineligible contributions.

Will I pay the 25 % government charge when I transfer a Lifetime ISA?

No, if the transfer is completed using the new provider’s official ISA transfer process, the 25% government charge does not apply. The charge applies when funds are withdrawn from the Lifetime ISA (for example, paid out to a bank account) rather than transferred as an ISA-to-ISA transfer.

Can I transfer my Lifetime ISA to another person?

No, your Lifetime ISA is personal to you and can’t be transferred to someone else. To gift the money, you’d need to close the account and withdraw the funds, which HMRC classifies as an ‘unauthorised withdrawal’ and applies the 25% charge.

Learn more: Lifetime ISA withdrawal penalty: What is it and how to avoid it?

Are there any tax implications when transferring a Lifetime ISA?

ISA transfers are designed to be tax-free, and a Lifetime ISA transfer between providers does not create a separate tax charge. Interest or investment growth within a Lifetime ISA remains within the ISA tax wrapper, provided the transfer follows the ISA transfer process.

*Fee-free mortgage advice is subject to eligibility, see terms & conditions here.