Mix and Match ISAs

Cubana48

Hello everyone

Just wanted to clarify something.

So you can have a Help2Buy ISA and a LISA but can only claim the bonus from one.

And each year, you can invest up to £20000 over 4 types of ISA: Cash, Lisa, Innovative Finance or stocks and shares ISA.

And of course you now have split ISA's for Help2Buy with the likes of Nationwide.

So does this mean in theory you could have a Split Help2Buy/cash ISA, Innovative Finance ISA, Stocks and shares ISA and a LISA? i.e. effectively packaging in 5 types.





Thanks

eskbanker

The distinct types recognised by HMRC (and used for application of the 'one of each type per tax year' rule) are the four you initially list.

Help to Buy is a specialised subset of cash ISA (albeit with its own rules) so isn't actually a fifth type as such in those meaningful defined terms, so you can only pay into a HTB and a non-HTB cash ISA if you do so via one of the providers offering split ISA capabilities.

Cubana48

So does that mean I could invest in all 4 types, with the cash ISA being a split between H2B and cash?

eskbanker

Cubana48 wrote: »

So does that mean I could invest in all 4 types, with the cash ISA being a split between H2B and cash?

Yes, provided that your HTB and non-HTB cash ISAs are both held together with one of the providers who support split ISAs, such as Nationwide.

I presume this is a hypothetical question, as it would be a highly unusual set of circumstances under which paying into all of these concurrently would be a sensible thing to do?

Cubana48

Thanks eskbanker

Yeah, hypothetical. Would be a logistical knightmare. Just can't decide which path to take right now.

Could I just get a regular (flexible) cash and stocks and shares ISA now, and then later switch it over to a LISA or H2B?


Thanks

eskbanker

I'd strongly recommend starting with a LISA or HTB and filling them up at the earliest opportunity, as they both attract free government money but have contribution limits which caps this.

Chances are that a LISA would be best (if you won't be buying your first property within a year but still intend to do so in the foreseeable future) - if you can get one open and funded with £4K in the next week then so much the better, as that would be £1,000 of free money that you'd otherwise miss out on.

But you really need to plan out what you're accumulating for and by when, in order to establish the best way of how to achieve those objectives....