Open 2 Lisa's?
billymadbiker
Posts: 249 Forumite
Hi,
Currently I have 1 Cash Lisa with Skipton.
I am 39. I will still be 39 in April next year so (I think) I could open a S&S Lisa in the new financial year if I wanted.
As far as I understand the rules..
I could top up my current cash lisa to £4k this tax year.
I can only pay a max of £4k into lisa each year.
Questions:
If I open a 2nd lisa can I split the amount I pay in next year - ie £2k into the cash and £2k into the S&S?
(Or as much as possible into the cash lisa and the minimium required amount into the S&S or the other way around?)
If I can do this will I get a £500 bonus on both lots?
I am aware that I am allowed to transfer a cash lisa into a S&S lisa if I wanted to but as I will turn 40 in the next tax year I won't be able to open any further lisa's so I am wondering if there are any advantages (or any downsides) to opening 2 while I still have the chance?
Just for background, I am hoping to buy a house in the next 2-3 years so would be using the cash isa to get the bonus (so that would be a max of £3k). Looking at property prices around my area though this may well be a non starter.
I also have no pension and I am self-employed so the S&S would be used towards that.
My thinking is that I could pay £4k into a high risk S&S lisa next year as that will give me a longer time for the investment to grow (hopefully). Then from the following year carry on filling the cash lisa again.
If I dont end up buying I can transfer the cash lisa into the S&S at a later date.
Thanks!
Currently I have 1 Cash Lisa with Skipton.
I am 39. I will still be 39 in April next year so (I think) I could open a S&S Lisa in the new financial year if I wanted.
As far as I understand the rules..
I could top up my current cash lisa to £4k this tax year.
I can only pay a max of £4k into lisa each year.
Questions:
If I open a 2nd lisa can I split the amount I pay in next year - ie £2k into the cash and £2k into the S&S?
(Or as much as possible into the cash lisa and the minimium required amount into the S&S or the other way around?)
If I can do this will I get a £500 bonus on both lots?
I am aware that I am allowed to transfer a cash lisa into a S&S lisa if I wanted to but as I will turn 40 in the next tax year I won't be able to open any further lisa's so I am wondering if there are any advantages (or any downsides) to opening 2 while I still have the chance?
Just for background, I am hoping to buy a house in the next 2-3 years so would be using the cash isa to get the bonus (so that would be a max of £3k). Looking at property prices around my area though this may well be a non starter.
I also have no pension and I am self-employed so the S&S would be used towards that.
My thinking is that I could pay £4k into a high risk S&S lisa next year as that will give me a longer time for the investment to grow (hopefully). Then from the following year carry on filling the cash lisa again.
If I dont end up buying I can transfer the cash lisa into the S&S at a later date.
Thanks!
0
Comments
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You could open the cash LISA now and when you purchase the house leave enough in there to meet the minimum balance terms (I think that's £1 for skipton) which will keep the ISA open.
Then transfer the cash LISA you already have to a S&S LISA and continue paying in until 50. Transfers between providers are fine after 40 if you already have a LISA, it's just you can't start a new one.0 -
Thanks,
So do I need to open the 2nd Lisa (s&s) before I am 40?
Or, as I already have one (cash) lisa can I change this to a s&s LISA after a house purchase when I will be over 40?0 -
You can open a LISA after 40 if it's "opened to receive a transfer from another Lifetime ISA", as per clause 9B.3 of the scheme rules.billymadbiker wrote: »So do I need to open the 2nd Lisa (s&s) before I am 40?
Or, as I already have one (cash) lisa can I change this to a s&s LISA after a house purchase when I will be over 40?
Worth noting that the above-referenced clause also clarifies thatbillymadbiker wrote: »If I open a 2nd lisa can I split the amount I pay in next year - ie £2k into the cash and £2k into the S&S?
(Or as much as possible into the cash lisa and the minimium required amount into the S&S or the other way around?)
If I can do this will I get a £500 bonus on both lots?Eligible individuals will be able to open more than one Lifetime ISA during their lives, but will only be able to contribute to one Lifetime ISA in each tax year0 -
billymadbiker wrote: »As I already have one (cash) lisa can I change this to a s&s LISA after a house purchase when I will be over 40?
Yes you can do this.
Once you have one open, as long as you transfer it and don't close it, you can move it between types/providers even if you are over 40.
You'll just need to make sure it has the minimum balance left in, e.g. £1, instead of being closed when you buy the house.0 -
Cool,
So in that case I can carry on paying the £4k/yr in to the cash LISA to max out the bonus for a house purchase then just make sure I don't claim the full amount from it to keep it active when I purchase. I can then transfer the remaining £1 to a new s&s LISA at the age of 43 for example.0 -
billymadbiker wrote: »Cool,
So in that case I can carry on paying the £4k/yr in to the cash LISA to max out the bonus for a house purchase then just make sure I don't claim the full amount from it to keep it active when I purchase. I can then transfer the remaining £1 to a new s&s LISA at the age of 43 for example.
Exactly
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