George Osborne announced further good news for ISAs. Although the contribution limit will be only marginally increased to £15,240 (following a generous rise earlier this year), new rules will allow partners to inherit the ISA of a deceased spouse and keep its tax-free status.

Currently if the ISA holder passes away, their surviving spouse inherits their ISA savings but loses its tax-free status. This move – which is with immediate effect – could further increase the popularity of ISAs over private pensions as an additional savings tool.

Plans to abolish the death tax due on pensions were also confirmed and will now include those receiving annuity income (earlier statements had suggested this rule would only apply to those using income drawdown). Currently, pension pots are taxed at up to 55 per cent on death depending on whether the pension has been drawn on. In the future, when someone older than 75 dies, their heirs will pay income tax at the marginal rate and no tax charge at all will apply if aged under 75.