TISA, the British Bankers Association (BBA) and the British Societies Association (BSA) have published guidelines explaining how ISAs can be passed on tax free upon death.
The Chancellor announced in last year's Autumn Statement ISAs would keep their tax-free status when they are passed onto spouses after the holders' death. The new rules came into force on 6 April and give the surviving spouse a one-off ISA allowance of the value of the deceased's ISA savings, known as 'additional permitted subscription' (APS). This amount will not count against the person's normal ISA subscription limit and can be made to a cash or stocks and shares ISA. Previously investments held by deceased ISA savers lost their tax-free status before they were inherited. The...
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