Inheriting an ISA

If you inherit an ISA from a spouse or civil partner, you can essentially keep the ISA without it affecting your own allowance. No inheritance tax is payable, as with all bequests from spouses/civil partners.

If you inherit an ISA from a parent or anyone else, it stops being an ISA and you just inherit the contents of the ISA (cash or shares). It's subject to the normal inheritance tax of 40% above a certain threshold.