Lifetime ISAs guide

MichaelTombs

Hi there. Can I have a stocks and shares LISA and a regular stocks and shares ISA or am I only allowed to have a cash LISA alongside the stocks and shares ISA? If the latter would seem a bit unfair given the lack of non stocks and shares LISA's available. Thanks in advance.

masonic

MrMoneyman wrote: »

Should we open HTB ISA's and LISA's how does the transfer work, is there any benefit to doing this now or should we just go straight to the LISA's? I assume opening an account each would be the best course of action to get the maximum returns?

No point opening a HTB ISA now as you can just wait for a suitable LISA, open one each and dump £4000 into it before the end of the tax year and another £4000 each at the beginning of the next tax year, giving you £20k after bonuses are added. The only benefit to doing it right now is that you could use the money earlier next year if you were ready to buy.

MichaelTombs wrote: »

Hi there. Can I have a stocks and shares LISA and a regular stocks and shares ISA or am I only allowed to have a cash LISA alongside the stocks and shares ISA? If the latter would seem a bit unfair given the lack of non stocks and shares LISA's available. Thanks in advance.

I is a myth that there are two types of LISA. Each tax year you can pay new money into:
One S&S ISA,
one cash ISA,
one IF ISA,
AND your chosen LISA

elephantrosie

is there any providers of LISA yet?

darren72

elephantrosie wrote: »

is there any providers of LISA yet?

Nutmeg and Hargreaves Lansdown are the two main ones for Stocks and Shares Lifetime ISA's.

masonic

darren72 wrote: »

Nutmeg and Hargreaves Lansdown are the two main ones for Stocks and Shares Lifetime ISA's.

Yes, those two and The Share Centre - but I think that one can be ruled out on cost.

System

Annoyingly, my tenancy agreement runs May-May and I would like to be as close-to the position of being able to buy a place by the next time the renewal is due... This is my reason for wishing to get a LISA 'clock' ticking ASAP...!

josephibbs93

I currently have a Help to Buy (H2B) ISA and have a balance of approx £3,200. Will it be possible to continue paying into this with £200/month until March 2018 (giving a balance of £5,600), then transfer it to a LISA and then still have the £4,000 limit for this current tax year (therefore giving me a year 1 balance of £9,600?) Presumably then on the first day of the next tax year (2018/19) I can put in another £4,000 and then use the money to buy my first home as I am looking to do this in May 2018?

Thanks in advance for the help!

eskbanker

josephibbs93 wrote: »

I currently have a Help to Buy (H2B) ISA and have a balance of approx £3,200. Will it be possible to continue paying into this with £200/month until March 2018 (giving a balance of £5,600), then transfer it to a LISA and then still have the £4,000 limit for this current tax year (therefore giving me a year 1 balance of £9,600?)

No, any 2017/18 payments into an HTB ISA will count towards the LISA allowance if you transfer it, so you'd only have £1,600 of your 2017/18 LISA allowance left in this scenario.

isasmurf

josephibbs93 wrote: »

I currently have a Help to Buy (H2B) ISA and have a balance of approx £3,200. Will it be possible to continue paying into this with £200/month until March 2018 (giving a balance of £5,600), then transfer it to a LISA and then still have the £4,000 limit for this current tax year (therefore giving me a year 1 balance of £9,600?) Presumably then on the first day of the next tax year (2018/19) I can put in another £4,000 and then use the money to buy my first home as I am looking to do this in May 2018?

Thanks in advance for the help!

To open a LISA in March 2018 and withdraw from it in May 2018 will incur a 25% withdrawal charge. A LISA must be open for 1 year before a penalty free withdrawal for a house purchase can be made.

elephantrosie

NevvyC wrote: »

Annoyingly, my tenancy agreement runs May-May and I would like to be as close-to the position of being able to buy a place by the next time the renewal is due... This is my reason for wishing to get a LISA 'clock' ticking ASAP...!

so why don't you open one right now???