Fact sheet

Obtaining additional ISA allowances following the death of your spouse or civil partner

In the 2014 Autumn Statement it was announced that ISA allowances could be passed on to surviving spouses/ civil partners when a saver dies.  Under the old rules, if a saver with an ISA died, the tax benefits fall away on death and the holdings are added to his/ her estate.

The new rules came into effect on the 6th April 2015 and gave the surviving spouse/ civil partner an "additional permitted subscription", a one-off ISA allowance, equal to the value of the deceased’s ISA holdings.

Where a person holding an ISA dies from 6 April 2018, the tax advantages of the ISA are extended until broadly three years from the date of death which impacts the calculation of the "additional permitted subscription"  allowance. 

A consumer leaflet, prepared jointly by the BSA, TISA and UK Finance, providing further information can be found here. 

Contact

Simon Rex

Information Services Manager

Tel: 0207 520 5914 simon.rex@bsa.org.uk