The problem with ISAs

Not withstanding the Chancellor’s raid on dividend tax credits, ISAs also have other fundamental flaws which can be to the disadvantage of the high net worth individual or the active investor. ISAs, like all investments, are not suited to everybody, and the individual with an Inheritance Tax problem has to realise that ISAs will bare tax at the full rate, if they form the top part of the estate. They cannot be placed into trust as they are personal tax allowances. Additionally, as many investors at the turn of the century found to their peril, losses in Unit Linked ISAs cannot be offset a...