Bereavement and planning ahead

After the death of a person holding an ISA, a surviving spouse or civil partner is entitled to an extra ISA allowance, known as an Additional Permitted Subscription (APS). The value of this allowance depends on the date of death. 
 

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• Investing in an inherited ISA
• Guide
• Frequently asked questions

The first thing to note is that there is a time limit for using the allowance. This is three years from the date of death or 180 days after administration of the estate completes, whichever is later:

• It is available irrespective of whether the recipient is a beneficiary in the deceased's will
• Since 6 April 2018, the tax benefits of an ISA continue after the death of the holder until the earlier of:
• Completion of the administration of the deceased's estate
• Closure of the account
• Third anniversary of the death of the account holder
• Tax treatment depends on individual circumstances and all tax rules may change in the future.

Investing your client’s own money

• Complete an Inherited ISA Allowance form and send it to us at Fidelity, PO Box 391, Tadworth, KT20 9FU.
• The allowance can be invested from the date of death. Cheque payments can be made as often as the client wishes, as long as they remain within the available allowance or expiry date of the allowance.

Please note a grant of probate is not required for this investment.

Using inherited ISA money

• Complete an Inherited ISA Allowance form and send it to us at Fidelity, PO Box 391, Tadworth, KT20 9FU.
• For clients that passed away between 3 December 2014 and 5 April 2018, the amount available is equal to the value of the ISA holdings at the date of death, even if the value once sold is greater.
• For clients that have passed away since 6 April 2018, the amount available can be either equal to the value of the ISA holdings at the date of death or the value of the ISA once sold; whichever is greater.

Please note this option is available only after probate has been granted.

Using the allowance by selling the beneficiary’s Investment Account

• Complete this form and send it to us at Fidelity, PO Box 391, Tadworth, KT20 9FU.
• The money will be out of the market for between five and seven days. Occasionally it may take a little longer than expected.

Please note this option is available only after probate has been granted.

Transferring an allowance from another provider

• Complete this form and send it to us at Fidelity, PO Box 391, Tadworth, KT20 9FU.
• We will confirm the transfer of the allowance to us, and the total ISA investments at the date of death.
• The transferred Inherited ISA allowance will now be available to your client for investment. It may take up to 30 days to receive confirmation of the allowance from the original ISA manager