In the current tax year we have already seen some key changes within the ISA regime. The maximum amount which can be invested in an ISA has been increased to £15,000 (rising to £15,240 from 6 April 2015). It is now possible to hold any combination of stocks and shares and cash and to switch between the two types.
Whilst the ISA provided tax protection in lifetime, the underlying investments would become liable to income tax and capital gains tax immediately after the date of death. The ISA wrapper will now retain its tax efficiency upon death if it is passed on to a surviving spouse or civil partner. If there is an ISA portfolio, it will now not only pass on IHT free but allow the survivor to continue to hold the investments in a tax efficient environment.
Date: 4th December, 2014
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