LISAs 25 May 2021 at 4:07PM in ISAs & tax-free savings 7 replies 309 views

Polly05

So last year I opened a cash LISA (for retirement) and a Stocks and shares ISA. 
I've decided that this tax year, I won't pay into the cash LISA anymore. But want to open a S&S LISA instead. 
So going forward, I'll pay into the S&S LISA and the normal S&S ISA. 
Thats allowed, isn't it? 
Thanks! 

eskbanker

Yes, S&S LISAs and S&S ISAs are different types so you can pay into both concurrently.

A cash LISA is an odd choice for retirement money (given the overwhelming likelihood of real-terms value loss to inflation) so you'd probably be best transferring that into the S&S LISA....

grumiofoundation

Yes that is allowed as Lifetime ISA (whether cash or S and S) and stock and shares ISA are different types of ISA.

Limits are a) £4000 contribution limit to LISA, b) £20,000 contribution limit across all ISA types per tax year.

If you have contributed more than a token amount to the cash LISA would probably sensible to look into transferring to S and S LISA.  

Polly05

grumiofoundation said:

Yes that is allowed as Lifetime ISA (whether cash or S and S) and stock and shares ISA are different types of ISA.

Limits are a) £4000 contribution limit to LISA, b) £20,000 contribution limit across all ISA types per tax year.

If you have contributed more than a token amount to the cash LISA would probably sensible to look into transferring to S and S LISA.  

How would transferring work? Would it still be considered as last year's contribution? 

grumiofoundation

Polly05 said:

grumiofoundation said:

Yes that is allowed as Lifetime ISA (whether cash or S and S) and stock and shares ISA are different types of ISA.

Limits are a) £4000 contribution limit to LISA, b) £20,000 contribution limit across all ISA types per tax year.

If you have contributed more than a token amount to the cash LISA would probably sensible to look into transferring to S and S LISA.  

How would transferring work? Would it still be considered as last year's contribution? 

(Assuming you use the ISA transfer process) transferring a previous years ISA doesn’t impact current years ISA subscription limit.

Stig66

Slight divergence but can anyone tell me why there is a limit of £450,000 on the cost of a property and is this subject to change i.e. as house prices increase?
Thanks

masonic

Stig66 said:

Slight divergence but can anyone tell me why there is a limit of £450,000 on the cost of a property and is this subject to change i.e. as house prices increase?
Thanks

The limit on the cost of the property was there as a very weak measure to target the taxpayer money. Like the £20k ISA allowance, it has remained the same over the last several years. There is no indication it will be uplifted in the near future, but perhaps property prices will soon start to fall as interest rates soar and we head into recession.

Stig66

Cheers for that... appreciate your input.