Bereaved savers miss out on Isa tax breaks

An investigation by the Mail has found that bereaved savers are in danger of missing out on a new tax break due to a lack of information.

Widows, widowers and bereaved civil partners were given the right to inherit Isas without paying tax on the returns under rules launched two years ago. The investigation has however found that many staff in major High Street banks are unaware the Isa inheritance rules even exist.

Speaking to the Mail, Claire Davis, director at Solicitors for the Elderly, says: “Savers looking to use their inherited Isa allowance are very vulnerable. The forms are too complex and a lot of people can’t cope with them.

“Banks do not seem to have their systems in order. Each branch has its own procedure and while head office might know about it, not all branch staff do.”

A spokesman for Santander says: ‘As a result of your experience we are reviewing our processes and taking immediate steps to provide additional information to our branch colleagues. We would like to thank you for bringing this to our attention.’

If you have any concerns or queries relating to an inheritance tax matter, our IHT experts at Beavis Morgan are available to assist.

Please contact Barrie Dunning or your usual Beavis Morgan Partner.