Yes. You can only transfer once from a Help to Buy ISA without affecting your Lifetime ISA allowance. If you transfer your Help to Buy ISA to a Lifetime ISA in the 2017/18 tax year, you can transfer the balance as at 5 April 2017, plus any interest earned, and the amount transferred won’t count towards your 2017/18 Lifetime ISA subscription limit of £4,000.
Any payments into, or interest added to your Help to Buy ISA after 5 April 2017 which you then transfer to a Lifetime ISA will be treated as part of your annual Lifetime ISA allowance.
Whilst the first transfer from your Help to Buy ISA won’t count towards your annual Lifetime ISA allowance, subsequent transfers will. If you want to retain your full Lifetime ISA allowance, you’ll need to transfer all of your Help to Buy ISA savings in a single transaction.
You’ll receive the government bonus of 25% on the full value of the eligible amount transferred as well as any money you pay into your Lifetime ISA in 2017/18. For example, if you transferred £3,000 from a Help to Buy ISA (which was the balance at or before 5 April 2017), you could also pay in your annual Lifetime ISA allowance of £4,000 and the bonus would be paid on the £7,000 invested in 2017/18.
We reserve the right to withdraw this facility at any time. For example, we may stop accepting transfers in if very high volumes of ISA transfers pose a risk to our usual high standards of service. If this happens we’ll contact any customers we have received the transfer document from to explain the options available.