Finance Bill 2016: Income Tax – ISAs: tax advantages following the death of an account holder

Surviving civil partners or spouses to recently deceased ISA savers can have an additional ISA allowance to reinvest inheritance savings into their own ISAs.

Legislation within Finance Bill 2016 will allow for the extension of tax-exempt status for savings within an ISA post death.

This measure will result in personal representatives, beneficiaries and legatees not being subject to income tax or capital gains tax on any funds realised from ISA investments of a deceased person thereby increasing the inheritance ultimately paid out.