What is an additional permitted subscription?
Writer, Laura Suter
18 December 2024
3 minute read time
Anyone can inherit ISA cash and investments. But if you’re a surviving spouse or civil partner, you’ll also receive an extra ISA allowance, officially known as an ‘additional permitted subscription’ or ‘APS allowance’.
Let’s look at how your APS allowance is calculated and how to use it.
Does the APS allowance affect my ISA allowance for the current tax year?
No, it doesn’t. The APS allowance is an extra allowance, meaning you can pay in up to your ISA allowance for year (currently £20,000) plus the value of your APS allowance.
How is my APS allowance calculated?
Your APS allowance will be the value of your spouse or civil partner’s ISA(s) on the date of their death, or the date it’s closed – whichever is higher.
If your spouse or civil partner had multiple ISAs, then you’ll receive an APS allowance from each provider they held ISAs with.
How can I use an APS allowance?
You can use your APS allowance in most types of ISA, including a Lifetime ISA if you have one. But keep in mind a Lifetime ISA has a £4,000 annual payment limit.
If you’ve also inherited the cash and investments from your spouse or civil partner’s ISA, you can pay it into your own ISA to make use of the APS allowance.
Is there a time limit to use my APS allowance?
Yes – the time limit depends on whether you’re using the APS allowance by paying in cash, or moving the investments from your late spouse or civil partner’s ISA.
| Paying in cash | Moving the investments |
|---|---|
If you’re paying in cash, you’ll have up to three years after the date of death, or if later, 180 days after the administration of the estate is complete. You can pay in ISA cash you’ve inherited, or your own money. | If you choose to move the investments ‘in specie’ (i.e. keep the same investments), to your own ISA, you’ve got 180 days from the date the estate administrator tells you that the investments are in your name. You can only do this with the provider that held the investments, meaning you’ll have to open an ISA with them if you don’t already have one |
Can I use my APS allowance with AJ Bell?
Yes – if your spouse or civil partner had an AJ Bell ISA, you can use your APS allowance with us. You’ll need to open your own AJ Bell Stocks and shares ISA if you don’t already have one.
We don’t currently accept APS allowances transferred from other providers. If you’d like to move your ISAs to AJ Bell, you’d need to use any ISA APS with the other provider(s) first before transferring your ISA to us.
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Important information: These articles are for information purposes only and are not a personal recommendation or advice. We don’t offer investment advice, so you’ll need be confident you can manage your ISA yourself. How you’re taxed will depend on your circumstances, and ISA and tax rules can change.