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Old Mutual Wealth calls on Government to extend new Isa inheritance rules to a wider range of beneficiaries


If you are covering today’s Autumn Statement, please see the following comments from Adrian Walker, Old Mutual Wealth Retirement Planning Expert, calling on the Government to allow Isa savings to be passed on tax free to children as well as a spouse.

Old Mutual Wealth Retirement Planning Expert Adrian Walker says:

“Today’s Autumn Statement is fantastic news for those that have saved into an Isa during their lifetime. However, the Government should consider permitting true inter-generational sharing of Isa savings. Today’s proposals mean that Isa savings can in future be transferred to a spouse , or civil partner within a tax-advantaged Isa wrapper*. However, this is at odds with the abolition of the death tax on pensions**, which will allow pension savings to be passed on to a wider range of beneficiaries and for the inherited pension to be passed on through multiple generations potentially free of tax.”

“We know that a third of retirees*** use some Isa savings to fund their retirement so today’s news is a welcome boost for those looking to save for later life.”

*Autumn Statement 2014 pg. 8. Isa assets are currently treated as a general investment account when passed on at death, meaning any income taken is taxable. Today’s proposals mean a spouse will be able to take income from the inherited assets tax free.

**Following the abolition of the 55% death tax on pensions, assets within a pension wrapper can be passed on free of tax if the individual dies before age 75 or at the beneficiaries’ marginal rate thereafter. The Government has confirmed the same rules will apply if the pension pot is subsequently passed through multiple generations based on the age of the beneficiary at their death.

*** Old Mutual Wealth Retirement Income Uncovered

For more information contact:

Michael Glenister Old Mutual Wealth 0207 7789 63807469 144 535

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.