The inherited ISA allowance

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The inherited ISA allowance

Since 6 April 2015, spouses and civil partners* of ISA holders who died after 3 December 2014 have been able to inherit an additional ISA allowance. The value of the inherited ISA allowance, also referred to as an additional permitted subscription (APS) allowance, is equivalent to the value of funds that the ISA holder held in their ISAs when they died. A spouse or civil partner could therefore inherit allowances with a number of ISA providers reflecting where the deceased held their ISAs.

The inherited ISA allowance is in addition to the normal annual ISA allowance that savers and/or investors can continue to use.

The additional ISA allowance can be used for up to 3 years from the date of death or 180 days after the completion of the administration of the estate, if longer**. Money can be paid in as a lump sum or in instalments (if allowed for by the provider).

Please note: the rules only apply to the transfer of an allowance and not the actual funds held within an ISA. The existing processes in place to move money held within the deceased’s ISA into the name of a beneficiary will still be followed.

Before you can use an inherited ISA allowance

Please ensure the death of your spouse or civil partner has been registered with each applicable ISA provider.

You can register the bereavement with Nationwide by writing to us or visiting us in branch. Please provide the original or a certified copy of the death certificate. You can find more in our bereavement section.

If your spouse or civil partner held a Stocks and Shares ISA with Legal & General you will need to log the bereavement separately by contacting them directly. Please refer to your Legal & General documentation or contact them.

Need help?

Once the death has been registered if you are looking for help and/or advice with your finances, come and talk to your local branch or call us on 0800 30 20 11.

*The deceased and the surviving spouse must have been living together at the date of death. That is, not separated under a court order, under a deed of separation, or in circumstances where the marriage or civil partnership has broken down. Other criteria applies, please ask for full details.

** If the date of death was between 3 December 2014 and 5 April 2015, the date of death will be taken as 6 April 2015. If the deceased held a Stocks and Shares ISA and ownership of the deceased’s ISA investments has passed to the surviving spouse or civil partner they will have 180 days to move them back into a stocks & shares ISA.

Using the inherited ISA allowance with Nationwide