CGT base cost of ISA investments 3 years post death

Trusts Discussion
1

I have posted previously regarding the base cost of inherited ISA investments and note the override of the ‘usual’ rule provided by Reg 34A SI 1998/1870.

I am dealing with a similar case whereby an estate includes an ISA portfolio of shares. We are now more than 3 years post death and the estate remains in administration (largely due to an uncooperative executor and the need for a Court order to remove them). The intention is to liquidate the ISA portfolio which is standing at a significant gain. I am unclear as to the relevant base cost and would appreciate views please - presumably this is either the date of death value, or the value at the 3rd anniversary of the death of the deceased when the ISA treatment ceased?

2

Hi Kelly,

The ISA provider will usually close the ISA 3 years and 1 day after death. (If no transfer or encashed to the executor).

To this point it grows tax free. After the 3 years its non-Isa and will be subject to CGT as any other asset of the estate.

The base cost will be the value the ISA is converted.

Richard C. Bishop