Putting money back into an ISA inside the same tax year 13 March at 9:05PM in ISAs & tax-free savings 2 replies 136 views

ecosse206

Having withdrawn money from a LISA (house purchase). Can I put money back into a flexible stocks and shares ISA within the same tax year staying within my allowance?

I cannot find any information from HMRC website to say I can’t and having asked the Gov helpline and ISA providers no one seems to have an answer. 

Working example:Put £16k into flexible stocks and shares ISA. Put £4K into LISA. £1k Gov bonus paid. Buy house and withdraw full £5k. Can I now put £4K back into my Stocks and Shares ISA within the same tax year?

Any help greatly appreciated. 

masonic

LISAs generally do not have ISA flexibility, although you can check with your provider about that. If your LISA happens to be flexible, then you would be correct that the £4k subscribed during this tax year could be used in a S&S ISA (but not any money paid in during prior tax years). The S&S ISA does not need to be flexible, only the LISA. This would be a bit of a loophole, as I don't think HMRC would have intended that LISAs could be made flexible by providers.

eskbanker

masonic said:

LISAs generally do not have ISA flexibility, although you can check with your provider about that. If your LISA happens to be flexible, then you would be correct that the £4k subscribed during this tax year could be used in a S&S ISA (but not any money paid in during prior tax years). The S&S ISA does not need to be flexible, only the LISA. This would be a bit of a loophole, as I don't think HMRC would have intended that LISAs could be made flexible by providers.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#f-isa

Lifetime ISAs cannot be offered as flexible ISAs.

[...]

Offering flexibility is optional for ISA managers. It is not available for Junior ISAs or Lifetime ISAs.