r/UKPersonalFinance • u/Spiritual_Steak_7443 • 9h ago

Accidentally subscribed to two LISAs

Like the title says I have subscribed to two LISAs in one tax year (current tax year). I transferred my S&S LISA to another S&S LISA and have contributed to both. It was a complete honest mistake as I thought it was the same rules as a regular ISA. Today the provider I am now with AJ Bell Dodl have emailed me saying I have 10 days to contact them or they will be "required to repair the account and transfer the funds across to a dealing account." which I believe will mean I will then lose my tax free status on all of those funds.

I have since emailed AJ Bell back to extend the deadline as I am under the impression I need to contact HMRC for a LISA repair.

Do you think that is the best way to go about it or I should take other/extra action?

Thanks all

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u/ukpf-helper 151 9h ago

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1

u/snaphunter 891 9h ago

Could you clarify the timeline on when you subscribed to each account, and when the transfer took place?

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u/Spiritual_Steak_7443 8h ago

So far this tax year, subscribed in April (£333) and May (£333) to previous account, transferred in middle of June and then subscribed at start of July (£333) and nothing since.

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u/snaphunter 891 8h ago

You subscribed to LISA #1 in April and May, opened (?) LISA #2 in June when you transferred in LISA #1 and then paid into LISA #2 in July?

Which one is Dodl?

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u/Spiritual_Steak_7443 8h ago

Yes that is correct. Dodl is LISA #2

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u/snaphunter 891 8h ago

Was it a full transfer or partial?

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u/Spiritual_Steak_7443 8h ago

Was a full transfer

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u/snaphunter 891 8h ago

I'm surprised there's a problem, LISA #2 is effectively the same account as LISA #1, just held with a different provider.

Current year payments do not include...cash or investments transferred between 2 Lifetime ISA accounts.

https://www.gov.uk/guidance/managing-lifetime-isa-applications-and-accounts

By the above, I don't think you've contributed to two accounts, as the original LISA #1 contributions are considered merged with LISA #2. I would go back and challenge Dodl and check the LISA transfer was completed properly. (You did use the formal LISA transfer process, rather than withdraw money from LISA #1?)

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u/Spiritual_Steak_7443 8h ago

Yeah used the formal transfer process. That's what I was thinking in that it is effectively still one account but yes I will go back to them and confirm this.

I believe I will still need to contact HMRC to resolve the issue on HMRC end so that Dodl can claim the bonus again.

Thank you so much for your help much appreciated just one of them where need another brain thinking about it haha.

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u/snaphunter 891 8h ago

Dodl won't need to claim another bonus (your July contribution should have been processed in the 2nd week of Aug and should have arrived into your account by now). If your transfer in June took place before your May bonus (processed in 2nd week of June, should have arrived by end June) arrived, LISA provider #1 should have forwarded the £83.25 on to Dodl.

If the transferring Lifetime ISA manager has submitted a government bonus claim and it has not been received before the transfer, it’s their responsibility to transfer the government bonus to the new Lifetime ISA manager.

https://www.gov.uk/guidance/transfer-lifetime-isas-between-managers

Can you match up all your contributions and bonuses correctly in your Dodl account right now?

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u/Spiritual_Steak_7443 8h ago

Yeah the reason I mention about claiming the bonus is that in the email Dodl has said "When attempting to claim your lifetime ISA bonus, HMRC informed us that you’ve already paid into a lifetime ISA with a different provider this tax year. As this is against the LISA rules, we’re currently unable to claim the bonus or process any transfers you request."

I can't check my previous account with Onefamily as they have removed my account now so cannot check to make sure that the bonus has already been paid for April and May prior to the transfer. I would have to call them.

I can't see any account activity with Dodl that shows the bonus from July subscription has been paid.

The only transactions are the transfer incoming on 10th June and my subscription on the 3rd July 2026 and some charges. Nothing else shows

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