ISA tax advantages will be extended to investments held within an account after the death of the account holder.
Draft legislation has been published that will provide that, subject to certain time limits, personal representatives and beneficiaries or legatees should not face income tax or capital gains tax on investments retained in an ISA during the administration of a deceased saver’s estate.
Currently, any interest, dividends or gains in respect of investments in an ISA that arise after the date of the account holder’s death to the date of closure of the account are not exempt from tax.
A technical consultation has been published along with draft regulations and a draft explanatory memorandum. The consultation ends on 7th April.