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
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