Inherited ISA Allowance Terms and Conditions
These terms and conditions are specific to your inherited ISA allowance. They form part of your cash ISA terms and conditions, so you need to read these along with the other documents that make up your agreement.
These terms and conditions have priority over anything that's said differently in another part of your agreement, including the terms and conditions that are specific to the cash ISA product you need to use for your inherited ISA allowance.
01 About your inherited ISA allowance
What is an inherited ISA allowance?
This is an amount which you may be able to pay into an ISA and is in addition to your 'annual ISA allowance'. Your 'annual ISA allowance' is the amount the Government sets as the maximum you can pay into an ISA in each tax year. Using an inherited ISA allowance is also referred to as making an additional permitted subscription.
Who can you inherit an ISA allowance from?
You may be able to inherit the ISA allowance from a person who has died. We'll refer to this person as the 'deceased' in these terms and conditions.
For you to inherit their ISA allowance, the deceased must have:
- been your spouse or civil partner
- died on or after 3 December 2014
- been living with you at the date of their death, and
- had one or more ISAs.
You and the deceased must not have been separated:
- under a court order
- under a deed of separation, or
- in circumstances where your marriage or civil partnership had broken down and the separation was likely to become permanent.
Even if you don't inherit the ISA, you still inherit an ISA allowance based on the value of the deceased's ISA. These terms and conditions relate to the use of the inherited ISA allowance and not any money from the deceased's ISAs you may have also inherited.
How is the amount of your inherited ISA allowance calculated?
The amount of your inherited ISA allowance is equal to the total value of all the ISAs which the deceased had. This doesn't include the value of any Junior ISA the deceased had.
If the deceased had ISAs with more than one ISA manager (such as a building society or bank), you may be able to choose what to do with your inherited ISA allowance:
For each ISA, you can either:
- use the inherited ISA allowance with the ISA manager it was with, or
- pay in money up to the value of your inherited ISA allowance with a new ISA manager.
We don't accept inherited ISA allowances in respect of ISAs held with other ISA managers. This means the amount of your inherited ISA allowance with us is equal to the total value of any cash ISAs (excluding any Junior ISA) the deceased held with us.
Please note: if the deceased took out a stocks and shares ISA through us, it will be held with another ISA manager. This means that the inherited ISA allowance from this stocks and shares ISA cannot be used with us.
When is the amount of your inherited ISA allowance calculated?
If the deceased died before 6 April 2018, the amount of your inherited ISA allowance is calculated at the date of death.
If the deceased died on or after 6 April 2018, you have the choice to calculate the amount of your inherited ISA allowance on either:
- the date of death, or
- if the ISA remained open after the date of death, the earliest of:
- the date the administration of the deceased’s estate is completed
- the third anniversary of the date of death, or
- the date of closure of the deceased’s ISA.
If the deceased had more than one ISA, you must use the same approach for all of them when calculating the total value of your inherited ISA allowance with us.
If you've used your inherited ISA allowance using the value on the date of the deceased's death, you can’t choose to recalculate the value using another method at a later date.
02 How to use your inherited ISA allowance
What type of account do you need?
To be able to use your inherited ISA allowance with us, you must first open a new Nationwide cash ISA product that can be used for this purpose. This applies even if you already have an open cash ISA product with us.
You can find details of the cash ISA products we currently have available to use your inherited ISA allowance on nationwide.co.uk or by asking in branch.
How long do you have to use your inherited ISA allowance?
To use your inherited ISA allowance, you have to have paid money into your new account opened with us for this purpose by the later of:
- three years after the date of the deceased's death, and
- 180 days after the administration of the deceased's estate has been completed.
If the deceased died between 3 December 2014 and 5 April 2015, the date of death for this purpose will be taken as 6 April 2015.
We'll assume that the time to make the payment ends three years after the date of death unless you tell us that the longer period applies.
How can you make the payment in respect of your inherited ISA allowance?
You can only make one payment into your new account in respect of your inherited ISA allowance. Your payment must not be higher than your inherited ISA allowance with us.
Please note: If your payment is less than your inherited ISA allowance with us, the remaining balance of that allowance will be lost. You won't be able to use the remaining balance of your inherited ISA allowance with us or with another ISA manager.
When you're ready to make your payment, you'll need to complete a payment instruction form. You can do this online at nationwide.co.uk or in branch.
Your payment can be made by internal transfer from another savings account or current account you have with us. You cannot make the payment from another cash ISA.
If you go to a branch, you can also make the payment by cheque.
You cannot make your payment using any other methods, including any other methods that your cash ISA product normally allows.
What if you change your mind?
When you open your new cash ISA product with us, you'll have a 14-day period in which to cancel your account. You can find out more about this in the 'Closing your account' section of 'Our Cash ISA Terms and Conditions'.
If you make the payment in respect of your inherited ISA allowance and choose to cancel your account within this 14-day period, we’ll return your money and you won't be treated as having used your allowance. You may then choose to use your inherited ISA allowance by opening a new cash ISA product with us or by moving your allowance to another ISA manager, as long as you still have time to do so.
03 After you've used your inherited ISA allowance
What if I take out money paid into my cash ISA in respect of my inherited ISA allowance?
The terms and conditions for your cash ISA product will set out how you can take money out of your account.
If you take out money paid into your cash ISA in respect of your inherited ISA allowance, you can pay the same or a lower amount back into the same cash ISA product or into a different cash ISA product you have with us, as long as you do so in the same tax year. The amount you pay back in won't count towards your annual ISA allowance.
You can transfer your cash ISA, including money paid in respect of your inherited ISA allowance, to another ISA manager. If you do this, you'll no longer be able to replace any money relating to your inherited ISA allowance that was taken out before the transfer.
Important related links
Protecting your money
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