We understand that when a loved one dies it is a very emotional time and can often be overwhelming. We’re here to offer help and support and try and keep things as simple as possible for you.
This page has been created to do just that and provide all the information you may need surrounding your partner's Individual Savings Account (ISA) allowance and the additional permitted subscription.
What is additional permitted subscription (APS)?
Additional permitted subscription (APS) is an allowance meaning that you, the surviving husband/wife or civil partner, can inherit an ISA allowance left behind by your loved one.
So, even if your partner has left their ISA savings to someone else, you can still get the tax benefits of the ISA allowance your partner has built up over time.
How much is my APS allowance?
APS doesn’t affect your own ISA allowance for the current tax year and instead offers an extra allowance on top of your regular ISA allowance of £20,000, meaning you can make more tax-efficient savings.
If your partner held more than one ISA with different providers, there’s a separate APS allowance for each one. If there is more than one ISA with the same provider, they will issue one APS to you that covers all ISAs held with them.
Here’s an example of how the APS allowance could work for you:
Partner’s ISA subscriptions = £40,000: Your allowance = £60,000 (personal allowance of £20,000 + £40,000 total held in ISAs by partner)
Your ISA allowance
£20,000
Partner’s ISA subscriptions
£40,000
Your ISA allowance with APS
£60,000
Eligibility
You will qualify for an APS allowance if your partner's death happened within the last 3 years.
You also must have been living with your partner at the date of death; however, if you or your partner were living in a care home, you will still be eligible. You must not have been separated:
- Under a court order
- Under a deed of separation
- In circumstances where the marriage or civil partnership has broken down
What type of ISA can I use my APS allowance in?
Your APS allowance can be used in a Cash ISA, Stocks and Shares ISA, as well as any ISA used in our CustomISA.
Using your APS allowance on a Lifetime ISA is allowed, but you must be a UK resident under the age of 50. Any APS allowance used in a Lifetime ISA will count towards the £4,000 yearly Lifetime ISA allowance.
Your APS allowance cannot be used for Junior ISAs.
What time limits apply?
There are time limits in place for using your APS allowance in time. The time limit for making cash subscriptions ends 3 years after the date of death. Or, if later, the allowance must be used within 180 days after the distribution of assets.
Benefits and limitations
Benefits
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You make more tax-efficient contributions to your own ISA.
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Your APS allowance doesn’t depend on who your partner leaves their ISA to, so if the ISA is left to their children, you can still have the APS to add to your own allowance.
Limitations
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Only applies to the husband, wife or civil partner of the deceased.
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Your APS has to be used within the time limits listed above.
How can I use my APS through Newcastle Building Society?
We can offer support with your APS on all of our ISA accounts at Newcastle Building Society as well as supporting you with other accounts you may have with different providers.
We understand that this time can be overwhelming. If you do need more support with how you can use your APS allowance with Newcastle Building Society you can pop into your local branch or call our support team on 0345 734 4345.
Glossary
Additional permitted subscription (APS) is an allowance meaning that you, the surviving husband/wife or civil partner, can inherit an ISA allowance left behind by your loved one.
ISA stands for Individual Savings Account and is a tax-free way of saving. You can deposit up to £20,000 into ISAs each tax year, and you’ll pay no tax on the interest you earn. The tax year runs from the 6 April to 5 April, and to open an ISA you’ll need to be 18 and have a National Insurance number.
A court order is a formal legal document that instructs someone to do or stop doing something or defines the legal relationships between parties in a court case.
A deed of separation, also known as a separation agreement, is a legal contract between a separating couple that outlines their rights and responsibilities.
Allows you to invest in a wide range of shares, funds, investment trusts and bonds. Although there is no fixed term, Stocks and Shares ISAs are considered to be a medium to long-term investment of ideally five years or more.
Helps you save towards your first home and/or retirement. Available for 18 to 39-year-olds to open, you can save up to £4,000 each year, and the government will pay a bonus of 25%, up to £1,000 each year.
Please note: You will only receive the Government’s 25% bonus if you go on to use the savings in your Lifetime ISA towards the deposit on your first home and/or retirement.
A Stocks and shares ISA is a medium to long-term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
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