Autumn Statement 2015: ISA exemption extended to estates

Income or gains on investments held in a qualifying ISA are exempt from tax but this exemption no longer applies after the investor dies unless the income was payable or the gain arose before death.

A technical consultation will be held with ISA providers with a view to including legislation in Finance Bill 2016 to extend the tax free exemption to estates during the administration period.

This change will provide a valuable relief to Executors and will be particularly useful for ISAs transferred under the surviving spouse provisions where the change would avoid a break in the exemption.