LISA and an ISA

satkin2

Hi,
Probably a simple question, but I'm struggling to get clarity.
I opened up a LISA earlier in this tax year.  My understanding is that its possible to have a LISA and and ISA at the same time, paying 4k in to the LISA with upto 16k in to the ISA, is this correct?

Is it possible to open an ISA this tax year?  When I looked at opening with Paragon (current equal best easy access) it asked it asks "Have you already opened and funded an ISA this tax year?" to which the answer is yes (assuming the LISA counts to this). Or should I be saying no?

Many thanks

Band7

You are correct, you can have both, a LISA and an ISA in the same tax year, and you have a total ISA allowance of £20k.

Just say 'no' in the Paragon application.

satkin2

Awesome, thanks @Band7.

eskbanker

Just to be clear on terminology, it's not really "a LISA and an ISA" as such, since a Lifetime ISA is an ISA!  There are four types of ISA, and the rule is that it's only permitted to pay new money into no more than one of each type in any tax year, so Paragon's declaration is badly worded and they should be using the more common phrasing along the lines of 'I haven't subscribed to another cash ISA in the same tax year that I'm subscribing to this one'.