ISAs - favourable treatment in estate administration
From April 2018, ISAs will continue to retain their tax-exempt status during the period of estate administration - maintaining the status until the estate has been finalised therefore inevitably reducing the tax payable during the administration period.
Next year, ISAs will continue to retain their tax-exempt status during the period of estate administration.
Historically, ISA status was lost on death and subsequent interest / gains were taxable during the administration period.
From April 2018, the ISA status will continue until the estate has been finalised which will inevitably reduce the tax payable during the administration period.
In addition to this, spouses and civil partners will continue to be able to leave their ISAs outright to one another to allow surviving spouses and civil partners to subscribe the ISA allowance of the spouse or civil partner who has died to their own ISA allowance. This will allow the survivor to maximise non-taxable income and benefit from increased tax free capital growth.