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    • Charlie-
    • By Charlie- 9th Jun 17, 9:32 PM
    • 5Posts
    • 0Thanks
    Charlie-
    Paying into HISA and Cash LISA in the same tax year
    • #1
    • 9th Jun 17, 9:32 PM
    Paying into HISA and Cash LISA in the same tax year 9th Jun 17 at 9:32 PM
    Hi all,

    Is it possible to open and pay into, a cash help to buy ISA and a cash Lifetime ISA in the same tax year? I've been given conflicting information on this.

    I know that normally you're only allowed to pay into one cash ISA in any given tax year, although you can pay into a stock & shares ISA etc as well I believe. But the main MSE article on The Lifetime ISA states the following:

    "You can open and contribute to a cash ISA and a Lifetime ISA

    The overall ISA limit is £20,000 in the 2017/18 tax year. You are allowed to split this between a LISA (up to the maximum £4,000) and put the remainder in a cash ISA, stocks & shares ISA and/or an innovative finance ISA (for peer-to-peer investing) in the same tax year.

    You're also allowed to have a Help to Buy ISA and a LISA, though you can't get the first-time buyers' bonus on both (see Help to Buy ISA vs LISA info below). But you could get the Help to Buy ISA bonus for a home and the LISA bonus for retirement."

    Does this mean there is a special rule for LISA's in that you can have both cash LISA and any other kind of cash ISA in the same tax year?

    Also what do you think about using the HISA to buy a home (i'll be buying in the next year or so) and then using the LISA for retirement? This is of particular to me, as its not really been mentioned elsewhere.

    Thanks!
Page 1
    • Not Me Officer
    • By Not Me Officer 9th Jun 17, 9:47 PM
    • 262 Posts
    • 46 Thanks
    Not Me Officer
    • #2
    • 9th Jun 17, 9:47 PM
    • #2
    • 9th Jun 17, 9:47 PM
    My understanding is

    you can open:
    a cash ISA (one of)
    a S&S ISA (one of)
    a Lifetime ISA (one of)

    and there may be other ISAs in there too.

    Basically you can open one of each and pay into each one providing you do not exceed the yearly limit of £20k combined.

    But you can't open (and pay in to) two of one sort.
    • badger09
    • By badger09 10th Jun 17, 11:37 AM
    • 5,112 Posts
    • 4,325 Thanks
    badger09
    • #3
    • 10th Jun 17, 11:37 AM
    • #3
    • 10th Jun 17, 11:37 AM
    My understanding is

    you can open:
    a cash ISA (one of)
    a S&S ISA (one of)
    a Lifetime ISA (one of)

    and there may be other ISAs in there too.

    Basically you can open one of each and pay into each one providing you do not exceed the yearly limit of £20k combined.

    But you can't open (and pay in to) two of one sort.
    Originally posted by Not Me Officer
    At the risk of overcomplicating

    Actually, you can open as many of each type as you wish. The rule(s) are about paying new money into one of each type at a time.

    @Charlie-

    A LISA is a category on its own, but a HTB is a special type of cash ISA, so you cannot pay into a cash ISA and HTB ISA at the same time. Unless you hold both with one of the few providers, such as Nationwide, who let you spread your contributions over several cash ISA products.

    However, there is little point in this as they are not usually market leading rates and you can earn more interest on your savings elsewhere.
    • eskbanker
    • By eskbanker 10th Jun 17, 12:02 PM
    • 5,280 Posts
    • 5,032 Thanks
    eskbanker
    • #4
    • 10th Jun 17, 12:02 PM
    • #4
    • 10th Jun 17, 12:02 PM
    At the risk of overcomplicating

    Actually, you can open as many of each type as you wish. The rule(s) are about paying new money into one of each type at a time.
    Originally posted by badger09
    I used to post the same thing on here but was corrected recently on this thread where isasmurf pointed out that technically an ISA isn't open until money has been paid in! So if you thought you were overcomplicating....
    • badger09
    • By badger09 10th Jun 17, 1:34 PM
    • 5,112 Posts
    • 4,325 Thanks
    badger09
    • #5
    • 10th Jun 17, 1:34 PM
    • #5
    • 10th Jun 17, 1:34 PM
    I used to post the same thing on here but was corrected recently on this thread where isasmurf pointed out that technically an ISA isn't open until money has been paid in! So if you thought you were overcomplicating....
    Originally posted by eskbanker
    That doesn't make what I posted incorrect.

    The first (opening) deposit could be a transfer of previous year's ISA subscriptions.

    Previous year's ISA subscriptions don't have to be kept together, so it is entirely possible (and allowed) to open multiple 'bog standard' cash ISAs & even S&S ISAs.
    • Charlie-
    • By Charlie- 10th Jun 17, 7:33 PM
    • 5 Posts
    • 0 Thanks
    Charlie-
    • #6
    • 10th Jun 17, 7:33 PM
    • #6
    • 10th Jun 17, 7:33 PM
    Thanks all.

    On another note, if I open a cash Lifetime ISA and then in the future decid to transfer to a Stocks and Shares Lifetime ISA, is this possible?
    • Ed-1
    • By Ed-1 10th Jun 17, 9:28 PM
    • 1,938 Posts
    • 1,034 Thanks
    Ed-1
    • #7
    • 10th Jun 17, 9:28 PM
    • #7
    • 10th Jun 17, 9:28 PM
    Thanks all.

    On another note, if I open a cash Lifetime ISA and then in the future decid to transfer to a Stocks and Shares Lifetime ISA, is this possible?
    Originally posted by Charlie-
    You could have a new Lifetime ISA each year if you wanted. But yes, you can transfer between LISAs.
    • Charlie-
    • By Charlie- 10th Jun 17, 10:01 PM
    • 5 Posts
    • 0 Thanks
    Charlie-
    • #8
    • 10th Jun 17, 10:01 PM
    • #8
    • 10th Jun 17, 10:01 PM
    Thanks, if I had 2x LISAs I would only be able to use the government bonus on one if them though right?
    • Ed-1
    • By Ed-1 10th Jun 17, 11:05 PM
    • 1,938 Posts
    • 1,034 Thanks
    Ed-1
    • #9
    • 10th Jun 17, 11:05 PM
    • #9
    • 10th Jun 17, 11:05 PM
    Thanks, if I had 2x LISAs I would only be able to use the government bonus on one if them though right?
    Originally posted by Charlie-
    No you can withdraw from them all if it's a qualifying event. All will get bonuses paid in them.

    It's the Help to Buy ISA that you can't claim a bonus on as well as use a LISA for house buying and the Help to Buy ISA bonus isn't paid into the account.
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