Additional Permitted Subscription image of growthBy Samantha Clarke, Chartered Paraplanner with Anstee & Co.

So, what is an “Additional Permitted Subscription” and how does it relate to an Individual Savings Account (ISA)?

In 2015, the Additional Permitted Subscription (APS) was introduced which allows a surviving spouse or civil partner to be granted a one-off additional ISA allowance, without this amount counting towards the survivor’s normal ISA subscription limit.

The rules apply irrespective of the size of the deceased’s ISA pots.  No matter how much they saved into an ISA, you will have that amount as an additional allowance. In the event that more than one ISA was held by the deceased, the pots will be combined to give an overall additional subscription amount that you can claim.

So who can claim this allowance?

The allowance is available whether or not the surviving spouse or civil partner inherited the deceased’s ISA assets.

An individual is eligible for an APS if:

  • Their Spouse or Civil partner died on or after 3 December 2014; and
  • They were not estranged or separated from their spouse or civil partner
  • They are 16 years of age or over

The availability of the APS allowance is not limited to UK residents.

If your spouse died between 3 December 2014 and 5 April 2018, the APS allowance is equal to the value of the ISA at the date of death. So, if the value at the date of death was £50,000, this would be your APS and could be contributed to any ISA of your choice.

From 6 April 2018, the deceased ISA will become a ‘continuing ISA’.  The APS, in this case, equals the higher of the value of the ISA at the date of death or the value of the ISA at the date the ISA ceases to be a continuing ISA.

The account will cease to be a continuing ISA on the earliest of:

  • The completion of the administration of the estate
  • The 3rd anniversary of the date of death
  • The closure of the ISA due to all the funds being withdrawn

Where an additional permitted subscription is made, any further payments up to the limit must be made with the same ISA manager. Any unused balance cannot be used with another ISA manager.

How soon do I need to act?

Time limits apply for using the APS allowance as follows:

  • Payments made by cash – the APS allowance is available for 3 years after the date of death, or for up to 180 days after administration of the estate is complete
  • Payments made in specie – 180 days of beneficial ownership passing to the entitled survivor

How Anstee & Co. can help you with the Additional Permitted Subscription

We are a firm of Independent Financial Advisers (IFA). This means that the advice we offer is unbiased. So, we will look at all the financial solutions available to you from the “whole of market”. This is unlike some financial advisers that recommend only their own products or work from a restrictive panel.

Why not arrange a meeting today to see how we may help you with financial planning. The first meeting is at our expense and is without obligation. Meetings can be at your home or at one of our offices located at-call back Additional Permitted Subscription logo

Kettering, Northamptonshire

Stamford, Lincolnshire

London, Pall Mall, Greater London

Additionally, our financial planners live and make use of meeting rooms in-

Bedford, Bedfordshire

Market Harborough, Leicestershire

Northampton, Brackley, Towcester and Wellingborough all in Northamptonshire.

Finally, the information contained in this article is for information purposes only and does not constitute advice. No action should be taken based on this information alone.