Query re Lifetime ISAs please

[fosunfan]

MY daughter, who is considerably more cautious than me, has a cash Lifetime ISA with Skipton Building Society which is clearly going nowhere with regards to returns.

She would like to transfer it to a 'Stocks & Shares' Lifetime ISA but it appears that HL, will not accept 'Lifetime ISA' transfers from another provider.

They have advised me that she can simply stop paying into the Skipton LISA and leave it 'dormant' so to speak and open then a 'fresh' S&S LISA with them and as long as she only pays into one or the other in any one tax year that is okay.

My understanding - which I am more than happy to be told is completely wrong - is that it is only possible to hold either a Cash LISA or a S&S LISA per individual.

Have I got that completely wrong? Have I imagined it?

If there is anyone with any direct experience of this who could advise or point me in the right direction I'd be extremely grateful.

Thanks for reading,
David

[Mr Pointy]

Well the .gov website says you can have both cash & S&S in a LISA:

https://www.gov.uk/lifetime-isa

AJ Bell say they take LISA transfers & they are well regarded:

https://www.youinvest.co.uk/lifetime-isa/transferr...

[Comacchio]

At the start of this month I started my 'FIRE' journey - have opened a Vanguard S&S ISA investing an initial £500 plus a regular £250 pcm into the FTSE global all cap.

I've also opened an AJ Bell LISA, at the moment only got £150 in it, also invested in the Vanguard FTSE global all cap. The AJ Bell fees are quite high for monthly buying though, so my plan is to only buy stock once or twice a year, but keep my monthly payment of £150 into the LISA, storing it in cash until I have enough to make it worth the dealing fees.

S&S ISA to bridge gap between 55 and 60, LISA to help bridge gap between 60 & 68 when my DB pension can be taken without reduction.


You can have 1 S&S ISA and 1 S&S LISA - don't think you can have an S&S LISA and a cash LISA.

[alistair1234]

Tell her to open a S&S LISA so she can do up to £4,000 per year with the £1,000 top up + anything else stick in the S&S ISA, where you can put up to an extra £16k.

[cloud_dog]

fosunfan said:

MY daughter, who is considerably more cautious than me, has a cash Lifetime ISA with Skipton Building Society which is clearly going nowhere with regards to returns.

She would like to transfer it to a 'Stocks & Shares' Lifetime ISA but it appears that HL, will not accept 'Lifetime ISA' transfers from another provider.

They have advised me that she can simply stop paying into the Skipton LISA and leave it 'dormant' so to speak and open then a 'fresh' S&S LISA with them and as long as she only pays into one or the other in any one tax year that is okay.

My understanding - which I am more than happy to be told is completely wrong - is that it is only possible to hold either a Cash LISA or a S&S LISA per individual.

Have I got that completely wrong? Have I imagined it?

If there is anyone with any direct experience of this who could advise or point me in the right direction I'd be extremely grateful.

Thanks for reading,
David

As others have confirmed you can have both a cash and S&S LISA. HL do not currently support transferring in of LISA, as per their LISA Transfer page:
https://www.hl.co.uk/investment-services/lifetime-...

One option would be to use the Vanguard GIA account as a low cost monthly investing option and then periodically (annually???) sell £4k worth, pay it in to YouInvest, and make a purchase. I'm unsure on YouInvest if you may be able to set up a regular investment for £4k in to Fund XXX, and then cancel the RI once the £4k has been taken/invested. Rinse and repeat.

[fosunfan]

Thank you everyone for your replies so far and taking the time to answer.

My daughter already has a small SIPP with AJ Bell - we'll have a good look at their LISA arrangements later.

Many thanks!