Case study inherited a spouse’s ISA - Fundamental Asset Management

Case Study

Client who has inherited a spouse’s ISA through APS allowance

For investment professionals only

Diane recently became a widow after her husband John lost a long battle with cancer. John was always a keen investor and he was particularly active regarding his and Diane’s ISAs and ensured to utilise their full annual allowances. This amounted to two sizable investments. Diane worries that John’s ISA will lose its tax status and that she will have to spend the next number of years adding it to her own. She is also worried about the inheritance tax bill that her beneficiaries will incur at her death.

Solution

Diane was relieved to hear from her financial adviser that the APS allowance allows her to inherit her late husband’s ISA into her own ISA in its entirety tax-free. Her financial adviser explained further that if she was to invest the funds into AIM stocks such as The Fundamental Asset AIM IHT ISA portfolio then this would benefit from 100% relief from inheritance tax after being held for two years.

Fact

An ISA allows an individual to save a specific annual amount free from income tax and CGT on growth. A lesser known benefit of an ISA is that it is transferable in its entirely tax-free to a spouse on death. This is referred to as an Additional Permitted Subscription (APS).

Income & Growth using AIM’s dynamism & opportunities
TAX No IHT if held for two years. Available as an ISA
PERFORMANCE 18-year performance Track record
ACCESS Client retains control of assets
PLATFORM ACCESS Available on key platforms
LOW COST Only 1%+VAT through a platform

For enquiries, please reach out to Jonathan

Jonathan Bramall

Jonathan is a Business Development Manager at Fundamental Asset Management. His role includes assisting clients and intermediaries. Jonathan has over 12 years’ experience in the finance industry. Over that time, Jonathan has worked for Barclays, Metro Bank and Moneycorp. Jonathan has been a Bank Manager as well as a Relationship Manager having looked after individuals and businesses of every shape and size.

Join Our Newsletter

Receive only the highest quality curated articles and generate positive momentum towards your financial goals.