Tax Question
RobStaffs
Posts: 308 Forumite
in Cutting tax
I have been investing in funds via a stocks and shares ISA for many years. My wife is the main benefactor in our will. Would she have to pay tax on any capital release or income from these funds in the event of my death?.
0
Comments
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There would be no tax on death, and your total ISA allowance would transfer to your wife.
However after your death, your wife would need to make arrangements to transfer the holdings into an ISA in her own name utilising the transferred ISA allowance in order to maintain tax free status of income and gains thereafter.
On second death ISAs fall within the total estate and so there may then be IHT.0 -
There would be no tax on death, and your total ISA allowance would transfer to your wife.
However after your death, your wife would need to make arrangements to transfer the holdings into an ISA in her own name utilising the transferred ISA allowance in order to maintain tax free status of income and gains thereafter.
On second death ISAs fall within the total estate and so there may then be IHT.
Thanks for your reply.0
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