Can I pay into a Stocks & Shares LISA as well as a regular S&S ISA?
I believe my confusion is to how a LISA is seen with regards to the law, compared to the other ISA types.
For example, I know you can pay into both a Cash ISA and a S&S ISA up to a combined limit of £20,000. I have a S&S LISA and given I'm basic rate self employed this is where I would be putting life savings into, however I also want to contribute to a standard S&S ISA if legal as then I can withdraw without the penalty I'd get if I were to withdraw from a LISA for say, a holiday, or car.
This is especially so given I can only put in £4,000 per annum into the LISA but I want to maximize the tax savings from the other £16,000 I have in terms of ISA allowance. Since Cash ISA interest rates aren't too high, I'd be looking to put savings into both the S&S LISA and then a S&S ISA in the same tax year.
(1)1 Comments
Sorted by latest first Latest Oldest Best
Yes, this is fine:
You can save up to £20,000 in one type of account or split the
allowance across some or all of the other types.
You can only pay £4,000 into your Lifetime ISA in a tax year
...
Example You could save £11,000 in a cash ISA, £2,000 in a stocks and shares ISA, £3,000 in an innovative finance ISA and £4,000 in a
Lifetime ISA in one tax year. www.gov.uk/individual-savings-accounts/how-isas-work
You might want to consider whether it is wise to be fully invested in shares. If you're going to have to dip into them for things like holidays and a car, you're taking a risk that you might have to sell when the market is low.
As a basic rate taxpayer, you have a £1 000 personal savings allowance. You don't need to chase the tax break with a cash ISA, which often have poor rates. However, you should consider keeping some of your savings in cash, for example in a current account that pays decent interest on the balance.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2026 All Rights reserved.