ISA assets to be free of tax until estate is distributed

The government has published draft legislation extending individual savings account (ISA) tax advantages to investments held in an account after the death of the accountholder, as promised in the 2015 Autumn Statement. It means that personal representatives and beneficiaries or legatees should not face income tax or capital gains tax on investments retained in an ISA during the administration of a deceased saver's estate, subject to certain time limits.

To take account of this change, the legislation also modifies the additional ISA allowance available to surviving spouses or civil partners of deceased ISA savers.

Read more on the HMRC website.