Where a person holding an ISA dies and that person was married or in a civil partnership, the surviving spouse or civil partner is entitled to an extra ISA allowance equal to the value of the ISA(s) held by the deceased. This is known as the Additional Permitted Subscription (APS) allowance and is available to the spouse or civil partner of an ISA holder who died on or since 3 December 2014. The deceased and the surviving spouse must have been living together at the date of death, and not separated under a court order, under a deed of separation, or in circumstances where the marriage or civil partnership has broken down.
The surviving spouse or civil partner doesn’t have to inherit the funds held in the ISA(s) to use the allowance. They can also choose whether to use the allowance with the same ISA provider(s) or whether to transfer the allowance to a different provider, although not all ISA providers offer accounts for Additional Permitted Subscriptions.
We accept Additional Permitted Subscriptions into our Cash ISAs. If you want to use your allowance, please contact us and we’ll provide the forms that you need to complete and help you with any questions that you may have.
ISAs are subject to HMRC rules and regulations and these are subject to change. Further details can be found at www.hmrc.gov.uk.