13 02 2017

UK To Waive Tax On Deceased Taxpayers' ISA Investments

HM Revenue and Customs is proposing to extend to the Individual Saving Account tax advantages to investments held within an account after the death of the account holder.

Recently released draft legislation would, subject to time limits, exempt personal representatives, beneficiaries or legatees from income tax or capital gains tax on investments retained in an ISA during the administration of a deceased saver's estate.

According to HM Revenue and Customs, the aim of the change is to reduce the tax chargeable on savings income after the death of an ISA saver and simplify the tax-advantaged transfer of ISA savings on death.

The measure was first announced in the Autumn Statement 2015. A consultation on the proposal is to run until April 7, 2017.