Answers · UK 2025/26
What happens to my ISA when I die?
Your ISA becomes a "continuing ISA" keeping its tax-free status until probate completes (max 3 years). A surviving spouse or civil partner inherits an Additional Permitted Subscription (APS) equal to the ISA value, allowing them to top up their own ISA above the £20,000 limit.
Full answer
Since 6 April 2018, when an ISA holder dies the account becomes a "continuing ISA" — investments stay sheltered from Income Tax and CGT until the earlier of: (a) the administration of the estate completing, (b) the ISA being closed by the executor, or (c) three years after death. After that point any growth becomes taxable. A surviving spouse or civil partner is entitled to an Additional Permitted Subscription (APS), a one-off extra ISA allowance equal to the higher of the deceased's ISA value at date of death or at the date the continuing ISA ends. Example: deceased held a £80,000 ISA. The spouse can subscribe £80,000 to their own ISA on top of the normal £20,000 annual limit. The APS does not transfer the assets themselves — those pass under the will or intestacy rules and may be subject to Inheritance Tax. AIM-listed shares held in an ISA may qualify for Business Relief and be IHT-free if held over two years.
Try the calculator
Related guides
More answers
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.