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New rules for ISAs

ISA savers are to benefit from the 2014 Autumn Statement.  Historic ISA rules have meant the tax advantages associated with the ISA automatically cease on the death of the person who owns the ISA.

In many cases this will still be the case, however from 6th April 2015 there will be a special exemption which will apply to ISAs inherited by spouses and civil partners.

From 6th April 2015, the surviving spouse (or civil partner) will be able to add their late spouse’s (or civil partner’s) ISA to their own ISA without a tax charge.

There is already an inheritance tax exemption for transfers between spouses (and civil partners).  This inheritance tax exemption is not likely to change.

This is great news for ISA savers and will hopefully bring added peace of mind to older savers.

Farrell Financial Planning are independent financial advisers based in Glasgow.  We offer whole of market independent financial advice.  ISA advice is included in our advice services.  We strongly recommend you take independent financial advice before making any investments decisions, including investing in ISAs.

Like all investments ISAs may not be suitable for all investors and their value can fluctuate and go down, so you may get back less than you paid in.

All information is based on Farrell Financial Planning’s understanding of UK law & HMRC practice in the UK. Tax and legislation are subject to change.

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