Changes to the tax treatment of ISAs on death are due to take effect from 1st April 2018.
Currently, the tax advantages of ISAs cease on the death of an account holder. From death , tax is chargeable on any income on investments which were held in an ISA wrapper and any gains are liable to Capital Gains Tax.
As from 6 April this year, investments held in an ISA will not be liable to income tax or capital gains tax during the administration period of a deceased persons estate, or for three years from the death whichever is shorter,
The change will simplify and benefit the administration of many estates.
If you need any advice please contact our Wills, Probate and Estates Team who will be happy to answer your questions.