Answers · UK 2025/26
What is the Additional Permitted Subscription (APS) for ISAs in the UK?
The APS lets a surviving spouse or civil partner inherit the deceased's ISA allowance, preserving its tax-free status. They can subscribe an extra amount equal to the value of the deceased's ISA(s) at death, on top of their own annual £20,000 limit.
Full answer
When an ISA holder dies, their ISA loses its tax-free status and becomes part of their estate. However, the Additional Permitted Subscription (APS) rule allows the surviving spouse or civil partner to make an additional one-off ISA subscription equal to the value of the deceased's ISA(s). Key rules: - The APS allowance equals the value of the deceased's ISAs at the date of death (or the date the estate administration closes, in some cases). - It is on top of the survivor's own annual ISA allowance (£20,000 in 2026/27). - The survivor does not need to actually inherit the ISA assets -- they receive the allowance even if the money goes elsewhere in the estate. - The APS must be used within three years of the date of death, or within 180 days of the estate administration completing, whichever is later. - It can be used in a cash ISA, stocks and shares ISA, or innovative finance ISA with a provider of the survivor's choice (not necessarily the deceased's provider). - For stocks and shares ISAs, some providers offer an 'in-specie' transfer where the investments themselves are moved into the survivor's ISA without needing to be sold first. The APS does not apply to Junior ISAs or Lifetime ISAs. From April 2024, ISAs of deceased persons continue to earn tax-free returns from death until the estate administration closes (up to three years), under the 'continuing bonds' rules. Survivors should contact the deceased's ISA provider and their own chosen provider promptly to claim the APS and avoid missing the deadline.
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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.