APS/Inheritance ISA - I think I messed up….

doris2366

Advice required please. 

My husband died 17days ago. I have inherited his ISA and allowance. We both had ISA’s  with Moneybox as recommended by Martin, both have used our allowance for this year. Moneybox do not allow transfers in.  So my husband’s ISA is being drawn down and I must find somewhere for it to go. 

I cannot find a provider who will allow me to open an additional ISA with them, as we were not existing ISA customers as his time of death. I have contacted Barclays, where my current account is held and they cannot answer my questions over the phone, and I cannot get an appointment until May 31st. 

Moneybox will be depositing the money in my current account. What I need to know is does this then basically cancel my inherited allowance? Should the money only go from my husband’s ISA directly to a new permitted ISA to retain the tax status? Does anyone know of a provider who will allow me to open an ISA in these circumstances? 

Thanks for any assistance in advance…

eskbanker

Firstly, sorry for your loss.

The APS mechanism basically gives you an extra contribution allowance and the deceased's ISA isn't transferred as such, so withdrawal of the proceeds into a current account is normal and doesn't impede the money making its way into an ISA in your name, over and above your own allowance.

So, the fact that Moneybox doesn't allow transfers doesn't in itself preclude you from using this money to pay into your existing ISA with them, although they may not support APS contributions, as not all do, so worth asking them about this.

In terms of which providers will allow APS ISAs, this does come up on here from time to time, so perhaps worth searching for previous threads - Barclays do, for example:

https://www.barclays.co.uk/content/dam/documents/smart-investor/isa/your-isa-understanding-the-additional-permitted-subscription-allowance.pdf

xylophone

https://www.skipton.co.uk/savings/additional-permitted-subscriptions

https://uk.virginmoney.com/virgin/assets/pdf/guide-to-additional-permitted-subscription.pdf