Changing LISA types

argentum

Can anyone tell me if it's possible to open a cash LISA then move it later to a S&S LISA, please? Or the other way round?

eskbanker

There's nothing in the scheme rules precluding this, so in theory yes, but this is obviously dependent on providers offering products that accept such transfers (Skipton do accept these at the moment).

argentum

Thanks so much for replying. I am, shall we say, on a tight timescale to open one or the other, so I thought to open a cash LISA asap and then move to S&S when I've had more of a think about it. I wasn't finding it easy to get to the bottom of what's allowed!

Ed-1

argentum wrote: »

Thanks so much for replying. I am, shall we say, on a tight timescale to open one or the other, so I thought to open a cash LISA asap and then move to S&S when I've had more of a think about it. I wasn't finding it easy to get to the bottom of what's allowed!

You can open a new LISA each tax year if you wanted without transferring. LISAs are just another type of ISA - you can have as many as you want over time but can only pay into one per tax year.

argentum

I thought you could only open new ones when you are under 40. Or does it mean you have to open the first one when you are under 40?

eskbanker

According to the official ISA rules at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/603261/ISA_Lifetime_ISA.pdf you can only open new ones after 40 if they're for the purposes of transferring in previous ones (plus a couple of other exceptional cases):

9B.3 Lifetime ISAs may only be opened by an eligible individual either on or after their 18th birthday but not once the individual has reached 40 (other than an account opened to receive a transfer from another Lifetime ISA, a defaulted Lifetime ISA payment (see paragraph 6.57) or a returned withdrawal after a failed first time residential purchase (see paragraph 9B.47)).

argentum

Makes sense, thank you for the info.