Spouses and Civil Partners can now receive the full tax benefits of their late spouses" or civil partner's ISA on death
Following the Governments autumn statement, ISAs can now be passed onto a spouse or civil partner free of Tax.
Prior to the budget, on the death of the ISA holder the funds contained within became subject to both Income tax and capital gains tax.
It is estimated that some 150,000 people each year lose out on the tax benefits of their spouse"s/civil partner's ISA when they die.
From hereon, when an individual who is married or in a civil partnership passes away their tax benefits can pass onto their spouse or civil partner. This means the surviving spouse or civil partner can have an additional one time only ISA allowance equivalent to the amount their deceased spouse or civil partner held in their ISA at the date of their death.
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