ISA / LISA strategy query

bogleboogle

Hi all,

I currently have a S&S ISA and a (separate) cash Lifetime ISA. 

I was considering converting the LISA to a S&S LISA, but it appears this isn't possible since I can't pay into two S&S ISAs - is this correct? I.e. if I already have a S&S ISA, my LISA is doomed to being a cash (or innovative finance) LISA? 

Thanks,

B

eskbanker

If you 'convert' a LISA into a non-Lifetime ISA then this incurs a 25% withdrawal penalty - why not simply transfer it into a S&S LISA instead (which you could continue to fund concurrently alongside a S&S ISA, subject to the £4K annual limit)?

Novice_investor101

The LISA is the ISA type, not whether it’s cash or S&S. you can have a normal stocks & shares ISA & a stocks & shares LISA. I have both a contribute to both monthly. 

The £4k LISA limit is included in the annual £20k maximum for ISA contributions. 

bogleboogle

eskbanker said:

If you 'convert' a LISA into a non-Lifetime ISA then this incurs a 25% withdrawal penalty - why not simply transfer it into a S&S LISA instead (which you could continue to fund concurrently alongside a S&S ISA, subject to the £4K annual limit)?

Sorry, that wasn't clear on my part, I meant I was considering converting the cash LISA to a S&S LISA. 

I wanted to check whether I could fund both a S&S ISA and a S&S LISA in the same tax year. It looks like the answer is yes? That's great news! 

bogleboogle

Hargreaves Lansdown's website states: "Unfortunately, we can’t currently accept transfers from other Lifetime ISAs."

... That's annoying. What are my other options? 

Nurse2047

I just transferred a cash LISA to s&s LISA to DODL which is part of AJ Bell https://www.dodl.co.uk/

masonic

AJ Bell's Youinvest and Dodl brands both accept transfers and have different charging structures. Youinvest will be cheaper for large amounts held over the long term in exchange traded investments.

bogleboogle

masonic said:

AJ Bell's Youinvest and Dodl brands both accept transfers and have different charging structures. Youinvest will be cheaper for large amounts held over the long term in exchange traded investments.

Thanks. 

In terms of fees, they charge a 0.25% platform fee (up to the first £100k or something like that), what are the other fees? Do they have a wide range of passive index funds (if so, where I can browse these and their OTF/other fees)?

eskbanker

You should be able to find all that information readily on their website without too much difficulty, in the same way as you're presumably able to do with your current S&S ISA provider?

https://www.ajbell.co.uk/lifetime-isa/transferring-into-a-lifetime-isa, https://www.ajbell.co.uk/lifetime-isa/charges-and-rates and https://www.ajbell.co.uk/funds should all be reasonably self-explanatory?