According to a recent report just 14% of those eligible to do so are taking advantage of their right to inherit their partner’s ISA. Widows, widowers and civil partners gained the right under a new law introduced in 2014 to transfer their partner’s ISA into an “additional permitted subscription” ISA (APS).
The surviving partner can hold the APS in their own name will pay no tax on the interest. This is in addition to their usual ISA allowance, which is £20,000 this tax year. To be eligible the date of their partner’s death must be on or after 3 December 2014. The allowance must be used within three years of the date of death or 180 days of completion of the estate’s administration if that is later.
The allowance was introduced in help bereaved individuals enjoy the tax advantage they previously shared. However according to a Freedom of Information request from insure Zurich only 61,000 have used the extra allowance out of a possible 450,000 over the past three years.
09/01/2019
View all >
26/08/2026
Prime Minister urged to reverse IHT changes at Autumn Budget
Prime Minister Andy Burnham has been urged to reverse changes to Inheritance Tax (IHT) at the upcoming Autumn Budget.
READ MORE
UK inflation increases to highest rate in four months
The UK rate of inflation has risen to 2.9% - its highest level in four months.
Data shows UK economy grew between April and June
The UK economy grew by 0.4% between April and June, official data has revealed.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.