Cash ISA additional permitted subscriptions

bazza950

I SEEM TO BE GOING AROUND IN CIRCLES trying to find a bank to accept m late wife's  Marcus (Goldmans Sach) isa .They tell me that it can be transferred to a new bank ,but has to be closed and they send me a cheque-which I then use to open another Isa -which is sort of tagged to the original date.I dont want to lose the tax free income status but is this really how its done plus any bank recommendations as few seem to want to take transferred funds.

FrugaiMacDugal

If you close it and withdraw then you lose the ISA status.

Normaly for an ISA transfer you would get the new provider to initiate the transfer.

Found this on a search,

Providers accepting Inheritance ISAs

• Barclays: Accepts transfers of the APS allowance.
• Fidelity: Accepts ISA inheritance from other providers.
• Hargreaves Lansdown: Accepts APS transfers.
• Nationwide: Accepts the inherited allowance for the partner's Nationwide cash ISAs.
• Newcastle Building Society: Supports APS on all their ISA accounts.
• NS&I: Provides information on how to use the inherited allowance.
• Santander: Offers Inheritance ISAs and accepts APS.
• Yorkshire Building Society: Allows you to transfer the APS to an existing or new YBS ISA. 

SacredStephan

Coventry BS Additional Allowance ISA:
https://www.coventrybuildingsociety.co.uk/member/product/savings/cash_isa/additional-allowance-isa.html

Don't worry about the middling interest rate. As soon as the funds from your late wife's account are in the Coventry ISA you can transfer to another ISA paying higher interest, if you want to.

masonic

FrugaiMacDugal said:

If you close it and withdraw then you lose the ISA status.

The I in ISA stands for Individual, so it will lose ISA status. The APS is a mechanism for a spouse or civil partner to inherit an additional allowance that allows them to regain ISA status on the funds within their own ISA. It is not necessary to use the same funds that were in the deceased's ISA and they have up to 3 years (in most cases) to use the additional allowance.

See https://www.gov.uk/guidance/manage-additional-permitted-subscriptions-into-an-isa

Newly_retired

My late husband’s ISA was with Lloyds. New ISA opened with Lloyds to receive the APS funds, which I then transferred in the normal way to my existing ISA with Coventry BS.

NB the rules mean that even if I was not entitled by the will to inherit the amount in his ISA, I can still have the alllowance of that amount.

xylophone

It would not matter if a spouse with ISA/S willed the whole amount to someone other than  husband/wife -  the APS would still be available to the widow/er.

https://www.gov.uk/guidance/manage-additional-permitted-subscriptions-into-an-isa

Find out about additional permitted subscriptions

Subscriptions:

• are available whether or not the surviving spouse or civil partner inherited the deceased’s ISA assets
  
  

https://techzone.aberdeenadviser.com/public/investment/Practical-guide-App-for-ISAAPS

What is an ISA additional permitted subscription (APS)?

There is now an additional ISA allowance available following the death of a spouse or civil partner. The Additional Permitted Subscription (APS) was introduced to allow a widow(er) to continue to benefit from tax free income and growth on an amount equal to the value of any ISA their deceased spouse/ civil partner held at the time of their death.

It's not the deceased’s ISA assets which are inherited but an additional ISA allowance equal to the value of the deceased’s ISA. This additional allowance is separate to, and independent of, the £20,000 annual ISA allowance.