Older Pep and Isa holders at risk of IHT charge

The company warns thousands of families could be hit with an unexpected IHT charge as many elderly parents hold on to these types of “tax-free” investment plans, without taking the necessary steps to protect their estates when they die. It estimates around 165,000 investors aged over 70 are holding “tax-sheltered” portfolios worth more than £100,000, which based on current mortality rates means around £0.5bn of the total yearly IHT tax revenue of £3bn, comes from IHT tax charges on Peps and Isas. At the moment Way Group believes there are around 300,000 investors who hold a large amount...