Article | Fabulous Women

Make your ISA portfolio free of Inheritance Tax

Posted on 11/05/2017

 It is easy, transfer your ISA portfolios to Aim ISA's and two years later they will be free of your estate and you will still own them.

Of course you will need specialist advice to achieve this magic solution, but assuming that you seek advice you can transfer your ISA's into AIM ISA's. Most companies on the AIM market qualify for IHT business property relief (BPR), but ensuring that is and remains the case is where specialist advice is essential.

You will continue to own the AIM  ISA portfolio in full, no complications with trusts, and you do not have to give it away. You retain full control, you can take the tax free ISA income, cash some in free of capital gains tax and generally have full access to your own funds. Other IHT solutions involve giving the money away, or putting it in trust while perhaps retaining some rights to income. These are also not fully effective for 7 years or even more, compared with 2 years for the BPR solution.

I recently recommended this to a long term client, a lady now aged 80. We were meeting to discuss inheritance tax, and also present were her accountant and other family members. There is however a difference between AIM investments and most others used in ISA's. They are likely to be higher risk. I pointed out that she needed to balance that higher risk against the absolute certainty of a loss of 40% of the portfolio value to the estate when IHT was paid (not a risk, a certainty).She looked around the table and said "well that’s a no brainer then"

So if you agree that it is a no brainer, and want to have your cake and eat it ask me for the fuller details about this and perhaps other BPR IHT solutions have your own cake and eat it too.

Call me (Alastair Lyon) on 01483 715823 and I look forward to talking to you

 

Back Author : Alastair Lyon

Please login first to submit comment.

Articles

Health Tip for October: How...

How to Get More ActiveIntegrate exercise into your daily routine - get off a stop earlier, avoid lifts and take the stairs, get...

September economic review

IFA Direct 20 Vicarage Road Woking Surrey GU22 9BH01483 715823 alastair@ifadirect.co.uk jonathan@ifadirect.co.uk...

Five things I’ve learnt from...

There is no better way to learn about running a business than rolling your sleeves up and doing it. I've certainly learnt a huge...

Family Law matters

Click the link below to check out how the Family Law Department at Taylor Rose can take care of yourFamily Law matters 

Economic Review August 2017

IFA Direct 20 Vicarage Road Woking Surrey GU22 9BH01483 715823 alastair@ifadirect.co.uk jonathan@ifadirect.co.uk...

How Jane Hardy became a...

If you’ve visited a Fabulous Women & Marvellous Men event, the chances are you will have met our owner and Managing Director,...

Property Market Review August...

IFA Direct20 Vicarage RoadWokingSurreyGU22 9BH01483 715823info@ifadirect.co.uk  PROPERTY MARKET REVIEWAUGUST 2017  Our monthly...