Isa and lisa? New year new ideas

2»

Comments

  • eskbanker
    eskbanker Posts: 30,933 Forumite
    First Anniversary Name Dropper Photogenic First Post
    makemerich12 wrote: »
    Yes i mean get a lisa now and max that out, then another in april plus a new Isa as i have maxed the current one out for this year
    Still not sure you got my point - if you've maxed out your current ISA for this year, that means (at face value) that you've paid in the full annual allowance of £20K and if that's the case then you can't pay any more into any ISA this tax year, whether it's a LISA or any of the other flavours....
  • makemerich12
    makemerich12 Posts: 157 Forumite
    First Anniversary First Post Combo Breaker
    eskbanker wrote: »
    Still not sure you got my point - if you've maxed out your current ISA for this year, that means (at face value) that you've paid in the full annual allowance of £20K and if that's the case then you can't pay any more into any ISA this tax year, whether it's a LISA or any of the other flavours....
    How does this work then if next year (April) as i understand it i'd be allowed both? I could have a isa and Lisa but wouldn't be allowed to put more then 14k in?
  • kwame41
    kwame41 Posts: 168 Forumite
    edited 15 January 2019 at 3:20PM
    You have a 20K annual allowance for all ISA's.

    Put 4K into a LISA this tax year. Leaving 16K of this years allowance for another ISA.

    Next tax year add another 4K into your existing LISA. Leaving 16K to invest for another ISA.

    Repeat each year until you buy a house / retire for the LISA. Same for the other ISA.
  • eskbanker
    eskbanker Posts: 30,933 Forumite
    First Anniversary Name Dropper Photogenic First Post
    makemerich12 wrote: »
    How does this work then if next year (April) as i understand it i'd be allowed both? I could have a isa and Lisa but wouldn't be allowed to put more then 14k in?
    As kwame41 says (and as I have said previously too), you have an annual £20K allowance in total for ISAs so if you put £4K of that into a LISA then that leaves £16K that you can put into other ISAs.
    kwame41 wrote: »
    You have a 20K annual allowance for all ISA's.

    Put 4K into a LISA this tax year. Leaving 14K of this years allowance for another ISA.

    Next tax year add another 4K into your existing LISA. Leaving 14K to invest for another ISA.

    Repeat each year until you buy a house / retire for the LISA. Same for the other ISA.
    Where is £14K coming from - starting from a £20K annual ISA allowance, if £4K is used for a LISA then that leaves £16K!

    But at the risk of repeating myself, continued references to funding a LISA this tax year are irrelevant if OP has already used their full £20K ISA allowance (unless using the ISA transfer process to shift money from old ISA to LISA).
  • kwame41
    kwame41 Posts: 168 Forumite
    eskbanker wrote: »
    As kwame41 says (and as I have said previously too), you have an annual £20K allowance in total for ISAs so if you put £4K of that into a LISA then that leaves £16K that you can put into other ISAs.

    Where is £14K coming from - starting from a £20K annual ISA allowance, if £4K is used for a LISA then that leaves £16K!

    But at the risk of repeating myself, continued references to funding a LISA this tax year are irrelevant if OP has already used their full £20K ISA allowance (unless using the ISA transfer process to shift money from old ISA to LISA).


    Just realised and corrected my mistake. :laugh:
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    kwame41 wrote: »
    Repeat each year until you buy a house / retire for the LISA.

    You can only contribute to the LISA until you are age 50.

    Alex
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards