Inheritance ISA allowance explained
Understanding the inherited ISA allowance
Navigating the financial implications after the loss of a spouse or civil partner can be challenging. One important aspect to consider is the inheritance of an ISA allowance.
Here’s a simple guide to what it means and how you can claim it.
What is an inherited ISA allowance?
If your spouse or civil partner has passed away and they held an ISA, you might be eligible to inherit an additional ISA subscription allowance known as an inherited ISA allowance or an Additional Permitted Subscription allowance (APS). This special allowance enables you to increase your ISA contributions for the year, over and above your standard annual ISA limit.
For example, if your partner had £10,000 in their ISA, your standard annual allowance of £20,000 could increase to £30,000 for that year.
It’s important to understand that this APS does not transfer the actual funds from your partner’s ISA into yours, but rather it increases your subscription allowance which is the amount you are allowed to pay into your ISA in the tax year.
How do I claim an inherited ISA allowance?
To claim this inherited allowance, follow these steps:
- If your partner’s ISA was held with Danske Bank, visit any of our branches.
- Provide proof of your marriage or civil partnership and confirmation that you were living together at the time of your partner’s passing.
The inherited ISA allowance offers flexibility; you can use it to subscribe to a Danske Cash ISA or you may choose to transfer this allowance to another ISA provider so that you can subscribe with them.
Time frame for using the inherited ISA allowance
It’s important to keep track of the timelines. This allowance can be used within three years from the date of your partner’s death, or within 180 days after the estate has been settled, whichever allows you more time.
Additional information
For more detailed information on the APS allowance, refer to UK Finance's leaflet - Obtaining additional ISA allowances.
If you have any questions or need further assistance regarding the inherited ISA allowance or any other financial concerns, our team at Danske Bank is here to support you every step of the way.
More information on our Danske Cash ISA account:
Danske Cash ISA
