HMRC has explained how the rules around ISA allowances work after a person asked how the system works.

A saver got in touch with the Government department over X to ask about depositing funds into several ISAs.

They queried: “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?”

A representative of the tax authority said in response: “A Lifetime ISA is classed as one type of ISA (whether it’s a cash or stocks and…