Thoughts re transferring S&S LISA to S&S ISA

[GoldOnyx]

Hi all,

Opened an S&S LISA with AJ Bell around 5 years ago and have put in max amount each year, which is all I can afford to currently save. I’m also looking to buy a place in London in the next year.

As I won’t be able to withdraw the money in the LISA before I’m 60 or use it to buy property (as I’m in London and looking to buy a place over £450k, which is over the LISA allowance), I’m wondering if I should transfer it to a S&S ISA for more flexibility and to help with my house deposit.

Re pension provisions for the future, I have a decent DB pension building up (for now) through my public sector job.

Thank you!

Is this possible? I think you’d have to take it out of the LISA (with penalty) then reinvest.

Ah I think you’re probably right - thank you!

If you have put £4k in each year for 5 years, then £20k in with £5k bonus. Plus then any growth, or minus loss.

It cannot be taken out without penalty. If a provider is willing to transfer it such that it does not come out of the ISA wrapper they would still need to deduct the penalty.

Penalty is £6250 on £25k. So you get back less than you put in. However if you have had growth on it, it maybe £30k, so £7500 penalty, thus you get back more than your initial £20k.

Therefore it may be worth doing. Otherwise leave until age 60 when you can take out penalty free.