The inherited ISA allowance

Setting up an Inheritance ISA

FAQs

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Yes, if your partner passed away on or after 3 December 2014. You’ll need to have been married to, or in a civil partnership with, your partner when they passed away. You need to have been living together and not legally separated or about to become legally separated.

You might want to think about it as it could mean you’re paying less tax on your savings.

Any cash ISAs, stocks and shares ISAs, innovative finance ISAs and lifetime ISAs your partner held will count towards your inherited ISA allowance. The only one that doesn’t count is a junior ISA.


  • If your partner died on or before April 5 2018

    Your inherited ISA allowance will be the value of your partner’s ISA(s) at the date of death.

  • If your partner died on or after April 6 2018

    At the time of applying, you can either:

    1. inherit an ISA allowance that is the value of your partner’s ISA(s) at the date of death

      OR

    2. if your partner’s ISA(s) remains open and continues to earn interest, you can inherit an ISA allowance that is the value of your partner’s ISA(s) at account closure. Your partner’s ISA(s) can remain open up to three years after the date of death.

    You will be able to use the higher of the two values as your inherited ISA allowance unless, under option 2, you start using this allowance before your partner’s ISA(s) is closed. When this happens, you will inherit an ISA allowance that is the value of your partner’s ISA(s) at date of death (the same as option 1).

The inherited ISA allowance is in addition to your annual ISA allowance, which remains the same. You can use your annual ISA allowance with the same manager you hold your inheritance ISA with, or with a separate manager.

The allowance is available for three years after your partner has passed away, or 180 days after the administration of the estate has been completed, whichever is the later date.

No, you can only pay into your Inheritance ISA from accounts that aren’t ISAs.

Each time you pay money into your account, we’ll write to you to confirm your new balance and how much of your inherited ISA allowance is left. We’ll also send you a summary once a year.

You can check your balance over the phone, in branch or, if you’re registered, using the Internet Bank or our Banking app.

You can’t replace any money you take out of your Inheritance ISA - you can only use up your remaining inherited ISA allowance.

Any money withdrawn from an Inheritance ISA can be placed into any non-Inheritance ISA you hold without affecting your annual ISA allowance.

You’ll need to complete our Inheritance ISA pack. You can do this online or pop into a Nationwide branch to pick one up.

You’ll just need to make sure you’ve completed both parts I and II of our Inheritance ISA pack. You can request a pack online or pop into a Nationwide branch to pick one up.

You’ll need to contact the other manager who will manage this for you.

What is an Inheritance ISA

Setting up an Inheritance ISA: Our four-step guide

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Protecting your money

More about the Financial Services Compensation Scheme

Important documents