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10th March 2015

ISA

The new ISA death benefits for investors from December 2014's Autumn Statement

In his Autumn Statement in December 2014, the Chancellor of the Exchequer, George Osborne, announced a new benefit for ISA investors: money held within an ISA wrapper can now be passed on to a spouse or civil partner, without losing the tax advantages.

For deaths on, or after, 3rd December 2014, the surviving spouse will have an additional, one-off ISA allowance, equal to the amount the deceased spouse had in their ISA.

This new benefit can be used from 6th April 2015 in addition to the normal ISA limit of £15,240. If executors or beneficiaries want to take advantage of these rules, they should send in the death certificate (and grant of probate if they have it) along with a covering letter to their ISA provider.

Please note that the value for probate purposes will be the date of death not the value at the time of application. There is also a potential tax liability (on any gains and income received) between the date of death and the transfer into the ISA (as the ISA wrapper is technically removed during the interim).


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