APS ISA Allowance Calculator
When a spouse or civil partner dies, the survivor inherits a one-off Additional Permitted Subscription (APS) equal to the deceased's ISA balance. This is in addition to the normal £20,000 annual ISA allowance.
Frequently Asked Questions
What is an Additional Permitted Subscription (APS)?
An APS is a one-off extra ISA allowance given to a surviving spouse or civil partner when their partner dies. It equals the value of the deceased's ISA(s) at the date of death, allowing the survivor to maintain the tax-free status of that money.
How long do I have to use the APS?
You have 3 years from the date of death, or 180 days after the administration of the estate is complete — whichever is later. Missing the deadline means losing the APS allowance permanently.
Can I use the APS to subscribe to any type of ISA?
Yes. The APS can be subscribed to a Cash ISA, Stocks & Shares ISA, or Innovative Finance ISA. You cannot use it for Lifetime ISAs.
Does the APS affect my normal annual ISA allowance?
No. The APS is entirely separate and additional to your £20,000 normal annual ISA allowance. You can use both in the same tax year.
What if the deceased had multiple ISAs?
You receive a separate APS for each ISA your spouse held. The total APS equals the combined value of all their ISAs at the date of death.
What if the ISA value increases after the date of death?
For ISAs held with the same provider, the APS is based on the value at the date of death or account closure — whichever is higher. This protects against market falls. Rules vary by provider.
Do I inherit the actual ISA or just the allowance?
You receive the APS allowance, not the underlying investments directly (unless you use the transferred ISA mechanism). You must actively subscribe to your own ISA using the APS before the deadline.
Is the APS relevant to unmarried couples?
No. The APS is only available to legally married couples and civil partners. Cohabiting partners do not qualify.
Can I split the APS across multiple tax years?
Yes. You can use part of the APS in one tax year and the remainder in subsequent years, as long as you do so before the 3-year deadline.
What happens to the ISA income after death?
From the date of death until the estate is closed (or up to 3 years), the ISA continues to earn interest tax-free under a 'continuing ISA' wrapper. This additional growth may increase the APS in some cases.
Does APS affect inheritance tax?
The APS itself is an ISA allowance — it doesn't affect IHT. However, the ISA funds inherited form part of the deceased's estate for IHT purposes unless left to a spouse (which is exempt).
What if my spouse's ISA was a Lifetime ISA?
Lifetime ISAs (LISAs) do not create an APS for the surviving spouse. However, the LISA balance passes through the estate and can be inherited. The 25% withdrawal penalty is waived on death.