It would be a cool feature if we could adjust our maximum pay-in to the ISA limit to reflect having a LISA with another provider (and it would also be cool if T212 could operate a LISA in the future).
Agree but you would lose money by withdrawing from a LISA so why do it?
You get a 20% top up on a LISA, and can draw down on it tax free in retirement. Meaning you can manage your pension drawdown more tax efficiently.
Or use it towards your first house (if eligible).
LISAs are underrated imo.
Agree, but you can only transfer out of a LISA in full, to another LISA prior to reaching pension age / purchasing first home, or during covid when the government relaxed withdrawal rules. Any other movement out and you lose value.
Agreed. That’s the product though.
Similar to a SIPP, it has its benefits and drawbacks.
I mean adjust ISA limit as in reflect that your ISA w- T212 is only £16000 if you have paid £4000 into a LISA.
Also, you can use it to buy a house providing your LISA provider is instructed to pay to a solicitor. There’s no penalty for that
No ISA providers interlink your contributions to adjust the limit if you have topped up elsewhere.
I don’t know where I asked for that (but I can assure you I already know, I am very up to date on fintech)? I said it would be good if we could self-lower the available limit that we can put into the T212 ISA. As in alter the ISA-contribution limit from £20,000 to £16,000 or really any other arbitrary amount under 20,000, so T212 would be able to stop us over subscribing.
It was sort of implied but yes not a bad idea - being able to lower from 20k rather than increase above 20k (and potentially abuse the allowance limit).
I don’t think it could be possible to increase the limit, as it’s fixed at £20,000 across all ISAs (it just wouldn’t make sense). I definitely think expanding the ISA types and being able to make downward only adjustments should be supported though (and in the future, automatically sharing the £20,000 allowance across all ISAs with T212. I would swap my LISA over)
Decent suggestion @Recchan, There are a lot of variables to consider before we can say if we’ll pursue implementing something similar down the road, though.
I’ll pass it along for further consideration, and I’ll let you know how it goes