S&S ISA and S&S LISA in the same year?
Discussion
My employer has just announced a scheme where each employee gets a £500 pre tax amount to spend on a variety of things including life insurance, travel insurance, tech gadgets, sports membership, buying and selling holiday days and contributing to a "Smarterly" investment ISA or LISA.
I already have a normal S & S ISA with Iweb otherwise i think the option i would take would be to have the £500 paid into an investment ISA.
However i think i may still be able to have the money paid into a newly opened investment LISA.
Is this the case?
Can i pay into an investment ISA and investment LISA in the same tax year?
From my understanding, withdrawals from the LISA would be the same as from an ISA as 25% gets added as the money goes in, and 25% gets taken off if the money comes out before retirement, so net 0%.
I am of course aware i can pay into an investment ISA and a cash LISA, but this is different i believe.
Hope that makes sense.
Thanks.
ETA, just noticed my maths fail WRT the net 0%.. other than that, does it work?
I already have a normal S & S ISA with Iweb otherwise i think the option i would take would be to have the £500 paid into an investment ISA.
However i think i may still be able to have the money paid into a newly opened investment LISA.
Is this the case?
Can i pay into an investment ISA and investment LISA in the same tax year?
From my understanding, withdrawals from the LISA would be the same as from an ISA as 25% gets added as the money goes in, and 25% gets taken off if the money comes out before retirement, so net 0%.
I am of course aware i can pay into an investment ISA and a cash LISA, but this is different i believe.
Hope that makes sense.
Thanks.
ETA, just noticed my maths fail WRT the net 0%.. other than that, does it work?
Edited by Benbay001 on Friday 22 November 13:47
Yes, it is not a net 0%!
£800 gets a 25% uplift of £200 to give a total of £1,000
A 25% penalty on £1,000 is of course £250, meaning you have lost £50 (or 6.66%).
Someone in government either went to the Diane Abbott School of Maths or this is deliberate!
Your LISA contribution simply come off your main ISA allowance - so if you put in £4,000 to a LISA you have £16,000 remaining for your ISA.
£800 gets a 25% uplift of £200 to give a total of £1,000
A 25% penalty on £1,000 is of course £250, meaning you have lost £50 (or 6.66%).
Someone in government either went to the Diane Abbott School of Maths or this is deliberate!
Your LISA contribution simply come off your main ISA allowance - so if you put in £4,000 to a LISA you have £16,000 remaining for your ISA.
JulianPH said:
Yes, it is not a net 0%!
£800 gets a 25% uplift of £200 to give a total of £1,000
A 25% penalty on £1,000 is of course £250, meaning you have lost £50 (or 6.66%).
Someone in government either went to the Diane Abbott School of Maths or this is deliberate!
Your LISA contribution simply come off your main ISA allowance - so if you put in £4,000 to a LISA you have £16,000 remaining for your ISA.
Yes indeed. We are about to lose a grand of savings by buying a house above 450k ... so only put it into a LISA if you know you will not buy above 450k! £800 gets a 25% uplift of £200 to give a total of £1,000
A 25% penalty on £1,000 is of course £250, meaning you have lost £50 (or 6.66%).
Someone in government either went to the Diane Abbott School of Maths or this is deliberate!
Your LISA contribution simply come off your main ISA allowance - so if you put in £4,000 to a LISA you have £16,000 remaining for your ISA.
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