As you are undoubtedly aware, an ISA is one of the most tax efficient investment vehicles possible. However, did you know that ISAs are included within your chargeable estate on death and are therefore subject to Inheritance Tax like any other asset?

It could be that your family end up paying 40% tax on the ‘tax-free’ ISAs you worked so hard to build up!

There is a solution. Since 2013 it has been possible to invest in Inheritance Tax-Free ISAs. Enabling individuals to do inheritance tax planning within the ISA tax wrapper for the first time.

At the core of this under-utilised financial planning solution is Business Relief (BR) – a Government tax incentive for people to invest their ISAs in well-managed, diversified portfolios of UK companies, effectively boosting the UK economy and at the same time gaining IHT relief (as long as the ISA is held for at least 2 years).  Furthermore, there is no limit to the amount you can transfer into an IHT Free ISA from any cash or stocks & shares ISAs you hold from previous tax years.

There are clearly many benefits when considering this type of ISA in your estate planning, not least the speed at which the investment becomes IHT exempt and the fact that you retain access and control of your money.  Furthermore, the long-term investment track-record of our carefully researched and recommended portfolios has been superior to their more main-stream counter-parts.

We recently delivered a live webinar focussing on Inheritance Tax ISAs which went into much more detail which you may find useful. Please do get in touch if you would like a copy of the recording to learn more. The most important thing however, is to sit down together and ensure that these ISAs are right for you after weighing up your own personal circumstances.

Please call 0117 363 6212 or email office@haroldstephens.co.uk to book your complimentary exploratory session.