I am aware that opening a new Help to Buy ISA is not possible when subscribing to another Cash ISA in the same cash year. On the other hand I've read that ISA transfers are not subject to this limit and I am supposedly allowed to transfer whenever I want.
My situation is as follows. I opened a Cash ISA last tax year with bulk balance transfer, and paid a small top-up this tax year (~£100). I want to open a Help to Buy ISA at another provider with a balance transfer from my current Cash ISA (as per the rules in the first paragraph). However, the maximum amount of initial opening balance for Help to Buy ISAs is £1,200 which is less than the balance of my Cash ISA. I'm not exactly clear what the rules are in my case.
- Open the Help to Buy ISA transferring only a part of my Cash ISA (leaving the rest in that Cash ISA)?
- As above but transfer the remaining cash into another type of ISA (not cash) or the Help to Buy ISA's Cash ISA?
- Wait until the next tax year to open the Help to Buy ISA?
- Something else?
My preference is to open the Help to Buy ISA as soon as possible and to keep whatever money can't be transferred there in a Cash ISA.