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

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