Aegon warns of IHT danger from ISAs

The firm says the major problem with these types of investment products is while the income is tax-free during an individual’s lifetime, on death they form part of the estate for IHT purposes. As a result, Aegon suggests tens of thousand of individuals could be at risk, as an individual who has taken their full PEP or ISA allowance since 1987 – when this type of product was first launched – could now have savings of more than £375,000, based on the same growth rate as an average unit trust. The firm points out this is significantly more than the current £300,000 IHT nil-rate threshold, ...