I have a Lifetime ISA which I paid £4000 into in this tax year. I also have a Help to Buy ISA which I have had since around April 2016 and have made the maximum contributions of £200 a month into with an initial £1000 deposit (around £5800 now). As I understand, the balance in my Help to Buy Isa before 5 April 2017 (£3400) can be transferred over to my LISA without it counting towards the yearly £4000 allowance.
I made a transfer request for £3400 to go from my Help to Buy ISA to LISA, but received a message from my LISA provider to say that a partial transfer cannot be made and the balance should be transferred in full. They said I could then withdraw the excess money into another account. I have now done this and intend to withdraw the extra £5800-£3400=£2400 into another account as this is above the allowance. Is this correct? (I simply don't get the bonus on this extra amount) I haven't broken any ISA rules by transferring too much?