APS ISA Allowance (Exceptions)

Sebo027

The  rules for transfer of an ISA held by a now deceased person to their spouse, by utilizing the APS ISA allowance state that the transfer must be:

• Completed 180d from wind up of the estate or;
• Within 3 years of the persons death or if later.

Is there any reason under which HMRC will make an exception and allow transfer after the 3 year period?

badger09

Sebo027 said:

The  rules for transfer of an ISA held by a now deceased person to their spouse, by utilizing the APS ISA allowance state that the transfer must be:

• Completed 180d from wind up of the estate or;
• Within 3 years of the persons death or if later.

Is there any reason under which HMRC will make an exception and allow transfer after the 3 year period?

I'm not aware of any exceptions. Did you have a reason in mind?

Sebo027

The long and short of is that Legal and General were requested by the executor (Lawyer) to transfer the holding to my mother's name. This wasn't done, and after a few phone calls it transpires that they would not transfer until receiving Probate (or confirmation) in Scotland. We did not receive any request for this in writing. Furthermore, upon being informed of my Father's death, IPS, (now Aegon) ceased all communication on the account. So basically, no statements were issued, and the account has been languishing since. 

The matter was complicated further because both my mother and father hold / held money through IPS, Co-Funds, both of whom are now part of Aegon. Aegon have been painfully slow to consolidate the legacy accounts and having called around every number I can find, it's clear there's a large disconnect between their legacy offices. This is one of the reasons I did not pick up on the account in question for so long. 

Quick edit:
Having dealt with numerous brokers and investment platforms during the process, a few tips for those doing something similar in future:

• The requirements / paperwork required to support a transfer and number of forms vary between platform / broker, often based on value of investment. 
• There may be fees involved to "transfer out."
• The utilisation of the APS allowance is often completely misunderstood by "front desk" assistants and the process was strung out much longer that necessary as a result.
• Surprising, Janus Henderson did not offer an APS option at all - so it may not be possible to simply transfer an ISA in the name of the deceased to a spouse and utilise the APS allowance. 

badger09

You have my sympathies. Sorting this stuff out is difficult enough without having to deal with incompetent companies! 

This is HMRC ISA Managers Guidance
https://www.gov.uk/government/collections/isa-managers-guidance

This is an extract re APS, which I think might help 

"When subscriptions can be made

Subscriptions can be made at any time from the date of death, subject to the time limits.

The time limit runs from the date the surviving spouse or civil partner becomes beneficially entitled to the non-cash assets. This would be the date you’re formally notified that the assets are in the ownership of the surviving spouse or civil partner. HMRC takes a pragmatic view but will query cases where there is evidence of avoidance or manipulation".

So, not an exception, but I think you, or the executor lawyer, should pursue a complaint with Legal & General and insist that they rectify their error by accepting the APS even though the time limit has passed. HMRC might not even query it, depending on how long ago the deadline expired.

Sorry, I lost the plot a bit with where the ISAs were, and where you want the APS to be used. 

Good luck