Is a LISA considered closed if I removed all the money from it?

krepaman

Hi all

I opened a LISA on Nov 2019 and then withdrew all of the money from it on Feb 2021.

I'm using the Shares LISA from nutmeg and it currently states:

Closing

Withdrawals:

£0

Although you’ve closed your pot, there may still be some dividends and interest applied over the next couple of months. We’ll collect these amounts up and send them on to you once they’ve all arrived.*

My question is, if I now put £1 in it, does the opening time count as Nov 2019 or as Sep 2021?

Just want to understand if I can use this LISA if I buy a house within 12 months from now.

Alexland

You would need to discuss with Nutmeg as if they have already reported your LISA as closed to HMRC (remember LISAs have enhanced digital reporting requirements) then the new subscription this year will probably restart the 12 month clock before a penalty free withdrawal can be made for a qualifying property purchase. Also if you intend to purchase in the next few years a Cash LISA is probably more suitable.

krepaman

Alexland said:

You would need to discuss with Nutmeg as if they have already reported your LISA as closed to HMRC (remember LISAs have enhanced digital reporting requirements) then the new subscription this year will probably restart the 12 month clock before a penalty free withdrawal can be made for a qualifying property purchase. Also if you intend to purchase in the next few years a Cash LISA is probbly more suitable.

Thank you. You are 100% right about Cash Lisa. The one in nutmeg is my wife's and the one I have for me is a cash LISA in paragon since we know that anything below 4-5 years is not worth having in stocks. 

I will get in contact with Nutmeg and see what they say.