Lifetime ISAs guide
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belfast_gal wrote: »Thanks Alex, I have emailed them back to request that. Seemed odd that they didn't offer it as an option though.
It should have been their default option. Send a message to AJ Bell to let them know your wishes.
Alex.0 -
Hi all
I have a S&S ISA with Charles Stanley Direct, currently worth a little over £9k, to which I contribute £125pm. No prospect of that increasing significantly in the near-medium future. The ISA is for additional money in retirement (30+ years away - I have a Civil Service pension so don't feel the need to add to that but want my own money which can't be impacted by Government decisions and future Government financial straights).
I am looking at transferring to a S&S LISA with AJ Bell. The £1.50 monthly trading cost would be more than countered by the Government bonus for as long as that continues, assuming they don't now decide to scrap the whole thing!
As my existing S&S ISA is worth more than the £4000 annual LISA limit, am I right in thinking that I cannot transfer it as such (not sure if they do partial transfers as I can't find any mention of it on AJ Bell's website). That would mean I would need to sell £4000 worth each year for a couple of years and withdraw it as cash, then invest it in AJ Bell. Unless I am missing something? Obviously I could just halt payments to the S&S ISA and use new money for the LISA, but I won't get close to the full £4k so that doesn't seem to make sense as any cost would surely be less than the bonus I would get for the full amount.
Am I missing anything?0 -
I wouldn't invest monthly, I'd let the £125 accrue outside of a LISA until nearly the end of the tax year and then dump it all in in one go.
As far as I know you can't transfer into a LISA from a S&S ISA so yes you'd need to sell and invest the proceeds.0 -
If you don't need access to any of this money until age 60 then withdrawing up to £4k per tax year from your S&S ISA to LISA wrap makes sense as then it's just two £1.50 transactions a year (one for the lump sum and another for the bonus).
Personally I would keep making the regular trades in the S&S ISA for now using it as a staging area to avoid regular trade fees and messing around with tiny monthly bonuses.
This approach will waste some of your £20k annual ISA allowance but it doesn't sound like you are using much anyway.
Ps if you are a higher rate taxpayer additional pension contributions might be more efficient than a LISA.
Alex0 -
You can transfer from a S&S ISA into a LISA, and AJ Bell accept such transfers, as per https://www.youinvest.co.uk/lifetime-isa/transferring-into-a-lifetime-isaAs far as I know you can't transfer into a LISA from a S&S ISA so yes you'd need to sell and invest the proceeds.
Having said that, the transfer does need to be via cash rather than in specie, but can be done within the ISA shelter rather than literally selling and withdrawing the proceeds from the S&S ISA, although as the poster isn't using much of the annual £20K ISA allowance this is largely moot....0 -
Hi I wonder if anyone can help. I opened a Lifetime ISA with Skipton and deposited £4000, I would like to know if the LISA can be used with other government housing schemes i.e. Right to Buy? Within the government guidance it states it can be used towards the purchase of a Shared Ownership Scheme on the basis that the criteria is met for both but I cannot find any information on using a LISA towards Right to Buy?
I am aware the Right to Buy Scheme is not a favourable topic amongst some MSE users as read within other forums. Would appreciated any useful advice or links to where I can find out.
Thanks0 -
If you don't need access to any of this money until age 60 then withdrawing up to £4k per tax year from your S&S ISA to LISA wrap makes sense as then it's just two £1.50 transactions a year (one for the lump sum and another for the bonus).
Personally I would keep making the regular trades in the S&S ISA for now using it as a staging area to avoid regular trade fees and messing around with tiny monthly bonuses.
This approach will waste some of your £20k annual ISA allowance but it doesn't sound like you are using much anyway.
Ps if you are a higher rate taxpayer additional pension contributions might be more efficient than a LISA.
Alex
Thanks all for the comments. I hadn't thought about making the contributions to Charles Stanley in the long term and just transferring over the £4k at the end of the tax year. That sounds like a good idea as it will minimise the trading costs - though obviously they are pretty minor in any case.
I'm a basic rate taxpayer so I don't think a seperate pension is the way to go for me.0 -
Hi I wonder if anyone can help. I opened a Lifetime ISA with Skipton and deposited £4000, I would like to know if the LISA can be used with other government housing schemes i.e. Right to Buy? Within the government guidance it states it can be used towards the purchase of a Shared Ownership Scheme on the basis that the criteria is met for both but I cannot find any information on using a LISA towards Right to Buy?
Yes as long as you meet all the other requirements of the LISA then it is compatible Right To Buy. This is mentioned on the MSE official guide which is worth reading:
https://www.moneysavingexpert.com/savings/lifetime-ISAs/
Alex0 -
Thanks all for the comments. I hadn't thought about making the contributions to Charles Stanley in the long term and just transferring over the £4k at the end of the tax year. That sounds like a good idea as it will minimise the trading costs - though obviously they are pretty minor in any case.
It depends how efficiently you scheduled the trades but the worst case if investing the contribution and later bonus would be 24 x £1.50 per year - ouch! I guess there's always the risk the market might move in the few days between transferring the money. Don't leave it too late in the tax year incase there are any unexpected problems. I would do one now and another at the start of next tax year to get the bonus investment growth started. Remember to leave enough cash in the account to comfortably (assuming some investment growth) pay the platform fees until you can next contribute.
Alex0 -
It should have been their default option. Send a message to AJ Bell to let them know your wishes.
Alex.
Cheers Alex, I got a response from Skipton today apologising for the confusion and saying that they'll transfer it to AJ Bell. I've sent a secure message to AJ Bell too letting them know.0
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