An Additional Permitted Subscription (APS) allows you to inherit an ISA allowance left behind by your spouse or civil partner. Even if your spouse or civil partner leaves their ISA funds to someone else, you’ll still inherit the ISA allowance that they’ve built up over the years.
How much is my APS allowance?
Whichever of the following is higher:
- the value of the ISA at the date of their death, or
- the value at the date the ISA ceased to be a ‘continuing ISA’.
A ‘continuing ISA’ means the ISA in question remains open and earning interest, tax free. This stays in place until whichever of these occurs soonest:
- the administration of the estate is complete
- the ISA is closed
- it’s been 3 years since your spouse or civil partner died.
What is the difference between an ISA fund and an ISA allowance?
ISA Fund
The money held in ISAs, i.e. if you have £10,000 invested you would have £10,000 in ISA funds.
ISA Allowance
The maximum amount you can save in ISAs per tax year. This is £20,000 for the current tax year.
What are the time limits to use the APS allowance?
The APS allowance is available for 3 years after the date your spouse or civil partner died, or for up to 180 days after the administration of the estate is complete, whichever is later.
How can I use my APS with Skipton?
Using your APS with a Legacy Cash ISA
If you're interested in using your APS with us, we offer a Legacy Cash ISA which was designed specifically with APS in mind.
Legacy Cash ISA
To make APS allowance contributions to an existing Skipton Legacy Cash ISA, please fill in an APS Paying In form.
If you're looking to transfer your APS allowance from another provider to an existing Skipton Legacy Cash ISA, we need a Legacy Cash ISA Application form, plus the APS Transfer Authority form.
Using your APS with a Stocks & Shares ISA
If you’d like to use some or all of your APS allowance with a Stocks and Shares ISA, your Skipton Financial Adviser can take you through your options. There’s no charge to hear their advice, however a fee will apply if you decide to act on their recommendations. You’ll need to have a lump sum of at least £20,000 or £500 a month, available to invest.
Stock market-based investments are not like building society savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise.
Stocks & Shares ISA
What if your spouse or civil partner had more than one ISA?
If your partner held several ISAs with different ISA providers, you are entitled to a separate APS allowance with each of the ISA providers. Alternatively, you can transfer multiple APS allowances to one ISA provider who will combine them into one single APS allowance.
No. Your annual ISA allowance for this tax year is £20,000 and your APS allowance sits alongside this. We offer a specific Legacy Cash ISA for the sole purpose of using your APS allowance. You can still save up to your annual ISA allowance in any of our other Cash ISAs, as long as you haven't already paid into another Cash ISA during the current tax year.
Do I need to invest the whole APS allowance in one go?
No. You can make unlimited payments up to the APS allowance using either inherited money or funds from elsewhere. You can use your APS allowance for up to 3 years from the date of your spouse or civil partner's death, or if later than 3 years, 180 days after the completion of the administration of the estate. Payments to a Skipton Legacy Cash ISA must be made by cheque, electronic transfer, or internal transfer from a Skipton Building Society account. If you opt for electronic payment, please call us on 0345 608 0783 to let us know. You’ll need to complete the APS Paying In form every time you pay in.
Please remember, once you've chosen where to invest your APS allowance, you cannot transfer your allowance to another provider at a later date. You can however transfer all or part of the funds in a Legacy Cash ISA to another provider and previous years funds into a Cash ISA. This will not affect your personal annual ISA allowance.
What happens if my spouse or civil partner leaves their ISA funds to someone other than me?
You'll still be entitled to an APS allowance because it’s calculated on the amount your spouse has built up in tax-free entitlements, regardless of whether or not you’ve inherited their savings (ISA funds). You don't have to use money from their ISA as your APS allowance; it can come from elsewhere.
I am classed as a non-UK resident. Am I still entitled to an APS allowance?
Yes - you’re still entitled to an APS allowance if your husband, wife or civil partner has died. But you can’t open a Skipton Cash ISA if you’re a non-UK resident.
What type of ISA can I use my APS allowance in?
You can’t use your APS allowance in a Junior ISA. It can only be used in a Cash ISA, Stocks and Shares ISA, Lifetime ISA, Innovative Finance ISA or any combination of these. However, different rules apply to Lifetime ISAs - you need to be a UK resident under the age of 50 and any APS allowance used in a Lifetime ISA will count towards the £4,000 annual Lifetime ISA allowance. You can’t pay your APS allowance into a Lifetime ISA if you’ve already paid into it that tax year.
If you’re over 16 and under 18, you can only use your APS allowance in a Cash ISA.