Scottish Equitable has warned that there is a threat of inheritance tax on so-called tax-free savings. They believe that there is a major problem with Pep’s, Tessa’s, and Isa’s, in that they cannot be put into trust, meaning that beneficiaries will be taxed 40% on the value of their intended tax free savings. Upon death, savings placed in these savings vehicles would be encashed and form part of the person’s estate, which if over £275,000, would be liable to inheritance tax.
Our view
Common sense approach by Scot Eq. If you need help on Inheritance Tax planning visit our site Inheritance Adviser.com and then contact us.