AIM-ISAs and estate planning: Exploring the IHT benefits

Have cash ISAs finally outlived their usefulness?

clock • 3 min read

It's three years since AIM-listed shares became eligible for inclusion in ISAs. With cash ISA returns close to zero, Paul Latham explains how investors can find growth potential while also gaining exemption from IHT

Have cash ISAs finally outlived their usefulness? The numbers would suggest so. NatWest and RBS are now paying just 0.01% interest to their instant access cash ISA customers. The Bank of England's decision in August to cut interest rates to 0.25% may well prove to be the final nail in the cash ISA coffin. According to HM Revenue & Customs, there are 21.7 million ‘adult ISA' holders in the UK today, holding £518bn in more cash ISAs (52%) than stocks and shares ISAs (48%). The irony is that thanks to the introduction of the personal savings allowance, most people are no longer paying...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on ISAs

Andrew Tully: Why cash ISA reform plans could do more harm than good

Andrew Tully: Why cash ISA reform plans could do more harm than good

'What we need is simplification of the ISA framework'

Andrew Tully
clock 26 January 2026 • 4 min read
Government stands by ISA reforms in response to Treasury Committee report

Government stands by ISA reforms in response to Treasury Committee report

Reeves has announced intent to slash cash ISA allowance

Isabel Baxter
clock 14 January 2026 • 2 min read
Concerns raised over potential tax on cash held in stocks & shares ISAs – reports

Concerns raised over potential tax on cash held in stocks & shares ISAs – reports

‘Cash-like’ product could face 20% charge

Cristian Angeloni
clock 08 December 2025 • 1 min read