An ISA (Individual Savings Account) currently allows you to save up to £20,000 a year without paying tax on the returns. This makes it a very popular and tax-efficient way of saving. But did you know that your ISA savings could be hit with Inheritance Tax of 40% on your death?
If you want to avoid this, you can invest in an AIM Inheritance Tax ISA. AIM is a sub-market of the London Stock Exchange that helps smaller and growing companies raise the capital they need for expansion. An AIM Inheritance Tax ISA is a portfolio of shares designed to be held in an ISA, but with protection from Inheritance Tax. You can invest all of your current £20,000 ISA allowance in an AIM Inheritance Tax ISA, or transfer unlimited amounts from any existing ISAs you have.