Additional Permitted Subscription (APS) ISA allowance
If your late spouse or civil partner held an ISA and died on or after 3 December 2014, you will inherit an additional ISA allowance called the Additional Permitted Subscription (APS) ISA allowance. The APS ISA allowance allows you to make contributions up to the value of your spouse or civil partner's ISA holding when he or she died. The APS ISA allowance is in addition to your personal annual ISA allowance and you qualify for it regardless of whether you inherit the actual cash or shares held within your spouse or civil partner's ISA.
If your spouse or civil partner died between 3 December 2014 and 5 April 2018 the APS ISA allowance equals the value of the ISA(s) as at the date of death.
If your spouse or civil partner died on or after 6 April 2018, the APS ISA allowance equals the higher of the value of the ISA(s) at the date of death or the value of the ISA(s) at the date the ISA(s) cease to be a continuing ISA. Consequently, if the value of the assets in the ISA increases, and you are inheriting the assets, they are able to transfer these in their entirety to an APS ISA and continue to benefit from the tax advantages of an ISA product. The value of the continuing ISA will be valued at the date of death and then again on either the closure of the ISA or on the third anniversary of the death, whichever is earlier. Depending on when the APS ISA allowance is used will determine the value, this will be the higher value calculated before the APS allowance is used or transferred between ISA managers.
ISA tax rules may change in future and their advantages depend on your individual circumstances.
We have produced an APS Investor Guide which explains the options available to you and the forms you will need to complete for each option. You can print these forms from the links below:
APS ISA valuation form
APS ISA application form
APS ISA allowance transfer authority form