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Important change in HMRC ISA rules

Unusually, the annual ISA limit isn’t increasing this year, but there’s one important change to ISA rules coming in from April 6 which we think could be of benefit to you and your family.

A significant development
HMRC have introduced a change which means that even when an ISA investor dies, their funds can stay invested within that ISA.
This is a significant move, because previously any money in an ISA automatically lost all of the tax advantages that come with this kind of investment, from the moment an investor died. All this changes from April.

The new rules mean that from the date of death until the estate is finalised the investment can continue to grow tax-free.

We think that this is good news, especially for older investors, and with previous changes which effectively allow a married partner to inherit their spouse’s ISA allowance, it makes ISAs one of the most popular choices for older investors.

Initial investment guaranteed
A unique benefit of our Healthy Investment ISA is that it includes a capital and growth guarantee if the investor dies – this is unusual for ISAs that have some exposure to stocks and shares. This means that, unlike a unit-linked ISA, a member’s estate is guaranteed to get back at least the initial investment if the investor dies.

We also have no maximum age limit for investing in our Healthy Investment ISA, which means that no matter how old an investor is they can take advantage of this valuable capital and growth guarantee.

If you want to talk about your ISA investments then just get in touch with our membership team.