ISAs – transfers on death
Every individual can invest a fixed amount into an ISA each tax year and all income and gains within the ISA are free from tax. On death, the ISAs can transfer to the surviving spouse or civil partner free from IHT. However currently the funds will no longer qualify as an ISA, and the income tax and capital gains tax exemptions are lost. Legislation will be introduced such that ISAs passing to a surviving spouse or civil partner remain as an ISA, with the associated tax benefits continuing.
ISAs – new annual subscription limits
For the 2015/16 tax year the ISA subscription limit will increase to £15,240 from £15,000. The Junior ISA and Child Trust Fund limits will increase to £4,080 from £4,000..