LISA / S&S ISA advice

L_D

I have a few questions about ISAs that I’m hoping someone can help me with.

I’m turning 40 in a few months so want to open a Lifetime ISA to save a bit for retirement (I’m already paying into my work pension & getting max company contribution. I also own a property, so it won’t be used for buying a house). I just want to put away a wee bit extra and think it would be good to benefit from the additional 25% from the Government.

I also want to open a stocks & shares ISA with the aim of saving long term – but I want to be able to access this money should the need arise.

So, I suppose what I’m asking is, can I open my LISA now then open the S&S ISA in the new tax year and pay regularly into both over the next tax year? Or can I only pay into one ISA per tax year?

If I can only pay into one each tax year, I’m guessing I can open my LISA now and pay money into it before the end of the tax year. Then next tax year I can open my S&S ISA and pay monthly into that?

Lastly, with the LISA, is the 25% paid on total amount of money in the account inc the Government bonus or only the money added? So, if I put in say £1k in year one and ended up with £1,250 after the bonus. In year two is the 25% paid on the full £1,250 or just the original £1k that I put in?

Thanks in advance!

MallyGirl

the 25% is on contributions so you would only get the £250 bonus in your scenario.

eskbanker

L_D wrote: »

can I open my LISA now then open the S&S ISA in the new tax year and pay regularly into both over the next tax year? Or can I only pay into one ISA per tax year?

You can pay into one ISA of each type in any given tax year, so, as LISA (cash or S&S) and S&S ISAs are different types, you can pay into both concurrently.

L_D wrote: »

with the LISA, is the 25% paid on total amount of money in the account inc the Government bonus or only the money added? So, if I put in say £1k in year one and ended up with £1,250 after the bonus. In year two is the 25% paid on the full £1,250 or just the original £1k that I put in?

Neither - in year two you only get 25% bonus on anything you pay in in year two, so once you've received a bonus on year one contributions you don't get a second bite of the cherry for those.