Aegon: advisers must consider IHT liability on tax free savings

The company explained that many individuals may have invested in these tax-free savings products for years thinking their money was in a safe, tax-free environment. Although they are free of income tax or capital gains tax during the individual's lifetime, on death, they form part of the estate for inheritance tax. This means that if their estate is above the current nil rate band of £312,000, they will be taxed at 40pc on death on assets above this amount. Aegon has calculated that an individual who has taken their full PEP or ISA allowance since this type of investment was launched in 1...