When an ISA account holder passes away, their surviving spouse may be permitted to subscribe more to their own ISA account than the normal annual limit. This extra subscription is called an Additional Permitted Subscription (“APS”).
If you are the surviving spouse and you want to take advantage of your APS permissions, read below to see a summary of the steps to follow:
1. Request the disclosure of the value of the deceased’s ISA
Normally, it is only the Executor or Administrator of the deceased’s estate that may request information about the deceased’s property. However, an ISA manager is authorised to disclose the value of the deceased’s ISA to you, as the surviving spouse, provided that the request is properly made and accepted. Ask the ISA manager of your spouse’s ISA for their request form to ensure that you provide all the necessary information and declarations. Please note that the request may only be made by the surviving spouse and not by a representative unless the representative holds a Lasting Power of Attorney for the surviving spouse.
2. Determine your Additional Permitted Subscription limit
The valuation of the deceased's ISA is carried out by the ISA manager in accordance with HMRC rules. Your APS limit is then worked out based on the ISA value as at the date of death, and the value of the ISA at the point that it ceased to be a continuing account of a deceased investor (when it was closed). The ISA manager is best placed to confirm to you what the APS limit is.
3. Make your Additional Permitted Subscription
Subject to relevant information, time limits, and declarations to an ISA manager, you may make your APS to either:
-the same ISA manager that managed the deceased’s ISA,
or
-another ISA manager, if they agree to accept the APS.
Important and often misunderstood: You must generally make your APS using your own cash, however you may be able to subscribe by transferring the deceased’s ISA.
The only way that you can make your APS by transferring a stocks and shares ISA account of the deceased is if you have openned an ISA account with the same ISA manager and you instruct them to transfer the deceased’s stocks and shares ISA to your own ISA with them.