Death of Cash ISA holder

happybagger Forumite Posts: 726
Sixth Anniversary 500 Posts Name Dropper Combo Breaker
Looked back a few pages but couldn't see this mentioned.

I'm currently dealing with the estates of two relatives and still awaiting probate for both.
I decided to leave the cash ISAs until the last so that they continue to earn what's a good rate tax free, having read that they can continue doing so as a "continuing ISA account" for up to 3 years and a day, or when an executor closes it or the estate is finalised.

However, when looking at Furness BS website terms for their ISA, which I was thinking of opening for myself, unrelated to the above, it states:

"Death of the investor

Interest earned on a Cash ISA after the date of death of the investor is not exempt from tax. However, there is no loss of exemption on interest arising before the date of death."

I presume Furness are incorrect then?


  • isasmurf
    isasmurf Forumite Posts: 1,999
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Sorry for your loss. 

    It looks like Furness haven't updated their documentation from when the tax law was changed a few years ago. What they say is true only where the account holder died on or before 5 April 2018. 

    Where an ISA holder dies after 5 April 2018, during the administration of their estate their ISA can continue to enjoy the tax exempt benefits as a 'continuing account of a deceased investor'. 

    See HMRC ISA Managers Guidance Notes - Death of an Investor 
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