Are ISAS Exempt from Inheritance Tax? | A Complete Guide
Individual Savings Accounts (ISAs) are one of the most popular tax-efficient savings vehicles in the UK. They offer protection from Income Tax and Capital Gains Tax on investments and savings. However, when it comes to Inheritance Tax (IHT), the situation is more complicated. Despite the favourable tax treatment ISAs receive during a person’s lifetime, they are not fully exempt from IHT. This means that under certain conditions, ISAs can contribute to the overall estate value, which may then become subject to IHT when passed on to beneficiaries.