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Investments Estate Planning Inheritance Taxation
Do you know you can inherit your partner's ISA allowance?
Amy Woolliscroft3rd June 2026
When a spouse or civil partner dies, dealing with finances can feel overwhelming. However, one valuable tax benefit is often overlooked: the ability to inherit your partner’s ISA allowance.
Normally, ISA tax benefits end when the account holder dies. The ISA itself becomes part of their estate, although transfers between spouses and civil partners are generally exempt from inheritance tax. What many people do not realise is that the surviving partner can also preserve the deceased’s valuable tax-free ISA status. Don't forget, tax rules and reliefs depend on individual circumstances and may change over time. As a result, tax outcomes will differ between investors and should be considered alongside your wider financial position.
This is done through an Additional Permitted Subscription (APS). Introduced in December 2014, APS allows a surviving spouse or civil partner to make extra ISA contributions equal to the value of their partner’s ISA at the date of death. This is in addition to their own annual ISA allowance.
For example, if your partner held £150,000 in ISAs when they died, you could invest up to an extra £150,000 into your own ISA wrapper, on top of your standard annual ISA subscription. This can provide a significant boost to your tax-efficient savings and investments. It is important to remember that investments rise and fall in value, so returns aren’t guaranteed. Over time investments have historically provided higher returns than cash over long term periods, but you could still get back less than you invest.
Importantly, the APS allowance is available regardless of whether you actually inherit the ISA assets themselves. The value is based on the deceased’s ISA holdings at death, or in some cases, their value when the account is closed if it continues to benefit from ongoing tax advantages during estate administration. There are, however, some practical considerations. Not all ISA providers accept APS transfers, so it is essential to check with your provider first. If they do not, you are free to open an ISA with another provider that does, even if you have already used some or all of your normal ISA allowance for the current tax year.
Timing also matters. In most cases, APS must be used within three years of the date of death, or within 180 days of the completion of the estate administration, whichever is later. For surviving spouses and civil partners, APS offers a valuable opportunity to retain hard-earned tax benefits and protect family wealth for the future.
If you have recently lost a spouse or civil partner, ensuring you make full use of the Additional Permitted Subscription could make a significant difference to your long-term financial security. Navigating the rules at such a difficult time can be complex, but you do not have to do it alone. Our experienced advisers can help you understand your options, preserve valuable tax benefits, and make informed decisions with confidence. Contact us today for compassionate, expert guidance tailored to your circumstances.
SJP approved 1/6/2026