ISA's TAX Free?

Xativa

I don't believe any mention has been made in Money Saving Expert about the TAX FREE element of ISA's when the holder dies because it can come as a shock that they suddenly lose there TAX FREE status and become part of the holders estate with all its implications. The Government give with one hand and take away with the other.

kidmugsy

Xativa wrote: »

I don't believe any mention has been made in Money Saving Expert about the TAX FREE element of ISA's when the holder dies because it can come as a shock that they suddenly lose there TAX FREE status and become part of the holders estate with all its implications.

Every one knows that: the taxes they are free of are income tax and CGT. Nobody has ever claimed differently, have they?

dunstonh

The Government give with one hand and take away with the other.

They can always use the pension tax wrapper instead of the ISA tax wrapper if that is a concern.

eskbanker

The relaxation of this rule for surviving spouses was covered when it was introduced in the last autumn statement.