HMRC sends message to clarify rules for those who have £20,000 in savings

HMRC has sent out a message to people who have more than £20,000 saved up. They explained the rules about ISAs (Individual Savings Accounts).

You can save up to £20,000 in one year into these accounts without paying tax on it. Someone asked HMRC on social media: "Can I pay into a stocks and shares ISA and stocks and shares LISA at the same time as long as the contributions are less than £20,000? ".

HMRC replied saying: "A Lifetime ISA is classed as one type of ISA (whether it's a cash or stocks and shares LISA), so you can also pay into a stocks and shares ISA as long as your contributions are within the £20,000 allowance."

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You can put your money into one ISA or split it between different types each tax year - from 6 April one year to 5 April the next year, reports Birmingham Live. There's no limit to how much you can save in your ISAs over your whole life.

Research shows that two out of five people who save in ISAs won't use all their allowance this year. Most say they don't have enough money to save the full amount. Alexa Nightingale from Opinium said: "ISAs offer a generous £20,000 annual tax free allowance, which is a big incentive to encourage saving."

"However, our research shows that a significant number of ISA holders will not maximise their full allowance before April 5 this year, with the majority simply unable to save that much money. People are more optimistic about their ability to save the full allowance next year, but only time will tell if that happens."