Isa savings could be boosted significantly by new rules governing inheritance tax, as married people take advantage of tax breaks on inheriting them.
Up to £359bn worth of savings could fall under the new rules.
With the 2011 census showing there were nearly 24 million married people in the UK – plus another 113,000 in civil partnerships – Financial Adviser worked out how much money could benefit from George Osborne’s announcement in the Autumn Statement about tax breaks on inheriting Isa savings.
If each married person had an ISA – with a tax-free allowance of £15,000 – this would mean savings of up to £359bn could benefit from the changes.
Mr Osborne estimates that 150,000 married couples with Isas die every year.
A joint life or guaranteed-term annuity of those who die before age 75 will also be able to be passed on tax-free.
HM Revenue & Customs has said it does not know how many couples use both Isa allowances.
It said approximately £57bn was subscribed to adult Isas in 2013-14 alone, with a total of 13.5m new adult Isa accounts subscribed to in the same year.
Adviser view
Andrew Smith, an adviser with London-based Parker Sage, said: “The trouble with cash Isas is that the interest rates are so low and it doesn’t attract people in.
“The changes will definitely encourage more people to use them, but with the change in pensions people may put more money there.”
