Cash LISA & SS LISA

JustAnotherSaver

I can't remember if i've previously asked this. I've a feeling i did but probably within another thread somewhere and i can't remember the answer.


You can save in to a cash ISA and a S&S ISA in the same tax year.
Can you save in to a cash LISA and a S&S LISA in the same tax year or is it a case of they're both treated as a LISA and you can only sub to one in a tax year?

Wildsound

You can contribute/subscribe into one of each of any of the following ISAs in each tax year:

1) Cash ISA (including HTB ISA)
2) Stocks & Shares ISA
3) Innovative Finance ISA
4) Lifetime ISA

The Lifetime ISA is unique in that there are currently both S&S versions and Cash versions of it. Either way, it forms part of one of those 4, and as such, you can only subscribe to one per tax year. Whether that is a cash one or a S&S one is up to you and your goals.

bowlhead99

As above - if you want to do both they'll have to be done in different tax years.

For example you can do a cash LISA now and then on 6 April do an S&S LISA, but you won't be able to add to the cash one during the 2019/20 tax year if you've paid in to the S&S onr in that tax year.

eskbanker

JustAnotherSaver wrote: »

Can you save in to a cash LISA and a S&S LISA in the same tax year

Although the question has already been answered above, I'd also query why you'd want to fund both concurrently?

Typically a cash LISA would be used by a first time buyer looking to purchase their first property within a few years, whereas a S&S LISA isn't suited to this (because of investment risk) and so would normally be considered more appropriate for long-term retirement planning.

Although it's not beyond the bounds of possibility that someone could want to fund both, it is relatively unusual for someone saving hard for a property deposit to be in a position to be putting money aside for retirement, over and above pensions.

So, what are your objectives, as there may be better ways of achieving them?

JustAnotherSaver

Thanks for the replies.

As for why I'm asking - curiosity. Knowledge. Just simply because really, just to know.

Alexland

eskbanker wrote: »

Although it's not beyond the bounds of possibility that someone could want to fund both, it is relatively unusual for someone saving hard for a property deposit to be in a position to be putting money aside for retirement, over and above pensions.

Maybe someone basic rate and self employed would benefit from a S&S LISA over a pension (no employer matching) so might want to add £2k per year into a S&S LISA for retirement and £2k per year into a Cash LISA for a property purchase?

Still I agree it's a weird unallowed combo as they would probably want to take the full £1k annual bonus towards the more immediate property purchase.

One way of achieving this might be to have a S&S LISA and not invest some of the money (or invest in a short term gilt fund but the fees might exceed the return) which then gets partially withdrawn by the solicitor.

Alex