H&L LISA

IAMIAM

I opened a LISA with them when I was 30 and haven't put any more in for a few years, I have just tried to top it up and its asking me to apply for a new LISA....is this the process all the time for every new tax year, open a new account? There is £5000 in with Fundsmith Equity. 

underground99

If you contribute each and every year they're allowed to just 'keep it open' for new contributions because they know you are only using them for your LISA rather than using anyone else's LISA product recently, and they know you have the same details as you used to. They can just keep your records going, and keep the product open for the current tax year.

Whereas if you skip a year with an ISA or LISA, they are required to assume you might have gone to another provider in the meantime, and therefore maybe you are contributing to that other provider for 2020/21 also. So they make you reconfirm all your details and formally 'reopen' your account with all the full declarations.

In practice, if you agree all the declarations about eligibility etc, your 'new account' with them will keep the same account number and customer reference and your new money will be in the same account ready to spend as your old fundsmith investment.

masonic

As above, it will be a continuation application rather than an application for a new LISA, so for example if you were over 40 you wouldn't qualify to open a new LISA, but shouldn't be stopped from reapplying to subscribe to your existing LISA having missed a tax year.