APS ISA Allowance - can it be used to open a second ISA in the same tax year?

slowbob

I believe I understand just about all the rules for using an APS allowance, but am looking for one point of clarification from the wiser members of the forums!

My mother has used her full £20000 personal ISA allowance for the current tax year.
We understand that she will be also entitled to contribute to an ISA using the APS allowance from my late father's cash ISA (now that probate has been granted).

However, her active ISA for this tax year is a Fixed Rate product that does not accept additional payments. Can she open a new cash ISA, funded just with the APS allowance with a different ISA provider in the current tax year? We appreciate that under normal circumstances, it is not permitted to "split" your cash ISA allowance between different providers in the same tax year, but are trying to understand whether APS counts as a "transfer" (which would allow opening a new cash ISA with a different provider) or a "deposit" (which would presumably mean she would need to wait until the next tax year to use the APS allowance).

Appreciate that this is quite a subtle distinction, so any advice would be much appreciated!

masonic

An APS allowance is always treated as previous year funds, so it is fine to pay into a different ISA than has been used for the current tax year.