Lisa or pension

zagfles

dunstonh wrote: »

Pension still beats LISA in most scenarios.

Pension has saving on 20% CT and 7.5% Div tax saving on the way in but only 75% of income above future personal allowance taxed on way out. Personal allowance unused by state pension is around £3500 for most people.

OP's OH previously worked for the council. Therefore likely to have a DB pension which might use up a good chunk or even all of spare PA.

LISA gives back the equivalent of 20% but you would have paid 20% CT and 7.5% div tax. So, it is immediately worse. It is tax free on exit but that wastes the unused personal allowance.

Which is why I wrote "...and he's likely to have enough other income in retirement to use up his personal allowance..." in explaining the scenario where the LISA may be better.

There may be a case for having both if the contribution level and future fund value hits certain bands

Yes. So it's not the straightforwards answer you and others were implying before.

OP - as you can see it's not a straightforwards answer, as well as tax issues discussed above there are all sorts of other issues such as access (you can access the LISA with a penalty, you can't access the pension at all till at least 55 probably older), and whether a LISA might disqualify him from means tested benefits (not sure about this).

It sounds like neither your FA nor accountant understand these issues - suggest you find ones that do.