I believe my confusion is to how a LISA is seen with regards to the law, compared to the other ISA types.
For example, I know you can pay into both a Cash ISA and a S&S ISA up to a combined limit of £20,000. I have a S&S LISA and given I'm basic rate self employed this is where I would be putting life savings into, however I also want to contribute to a standard S&S ISA if legal as then I can withdraw without the penalty I'd get if I were to withdraw from a LISA for say, a holiday, or car.
This is especially so given I can only put in £4,000 per annum into the LISA but I want to maximize the tax savings from the other £16,000 I have in terms of ISA allowance. Since Cash ISA interest rates aren't too high, I'd be looking to put savings into both the S&S LISA and then a S&S ISA in the same tax year.