People with long-term savings, such as individual savings accounts (Isas) are being warned that although these may currently be tax-free, they may contribute towards inheritance tax (IHT) liability, according to a one expert.
Margaret Jago, technical manager at AEGON Scottish Equitable, said that many people are not aware of the IHT implications of Isas and that a number of people may find that they are not liable to pay the tax.
"Whilst this type of investment is tax-free throughout their lifetime, when the investor dies, it becomes part of their estate for inheritance tax purposes," she remarked
Many people with long-term savings may be unaware that they have now "crept" into the IHT threshold, she added.
Commenting on IHT recently, Anne Young, technical director at Scottish Widows, advised people to calculate the value of their assets to see if their estate does push them into the current £300,000 threshold.
Isa savers warned over IHT
Isa savers warned over IHT
Tue, 15 May 2007
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