Isa savers should be mindful of IHT

This asset, added to an individual’s property, could well be enough by themselves to use up the IHT nil-rate band. In isolation, using the Isa allowance is a great idea, as part of a financial plan it may not be quite so attractive.

Andy Zanelli is head of retirement planning at AXA Wealth

KEY FIGURES

40% – Inheritance tax rate on estates over the nil-rate band

£325,000 – Current IHT nil-rate tax band

14.6m – Number of Isas subscribed to in 2012-13

£57bn – Amount invested in Isas in 2012-13