For more information on the financial terms used in this page, please consult the glossary.
If your late spouse or civil partner held an ISA and died on or after 3 December 2014, you will inherit an additional ISA allowance called the Additional Permitted Subscription (APS) ISA allowance. The APS ISA allowance allows you to make contributions up to the value of your spouse or civil partner's ISA holding when he or she died.
The APS ISA allowance is in addition to your personal annual ISA allowance, and you qualify for it regardless of whether you inherit the actual cash or shares held within your spouse or civil partner's ISA.
If your spouse or civil partner died on or after 6 April 2018, the APS ISA allowance equals the higher of the value of the ISA(s) at the date of death or the value of the ISA(s) at the date the ISA(s) cease to be a continuing ISA. Consequently, if the value of the assets in the ISA increases, and you are inheriting the assets, you are able to transfer these in their entirety to an APS ISA and continue to benefit from the tax advantages of an ISA product. The value of the continuing ISA will be calculated at the date of death and then again on either the closure of the ISA or on the third anniversary of the death, whichever is earlier. The point in time when the APS ISA allowance is used will determine the value; this will be the higher value calculated before the APS allowance is used or transferred between ISA managers.
If your spouse or civil partner died between 3 December 2014 and 5 April 2018 the APS ISA allowance equals the value of the ISA(s) as at the date of death.
Tax rules can change and the impact of taxation (and any tax relief) depends on your circumstances.
You can also download our guide to help you manage financial arrangements after a bereavement, which explains the process and next steps in more detail.
You may need to complete one or more of the following forms, depending on what you want to do.
APS ISA valuation form
Complete this form to request a valuation of your late spouse or partner’s ISA when they held an ISA with M&G. Please note, this is for information only and is not the same as transferring an allowance to us.
APS ISA application form
Complete this from to use your APS allowance by transferring cash or shares to M&G. This form can also be used to make additional subscriptions to use more of your APS ISA allowance.
APS ISA allowance transfer authority form
Use this form to give us permission to contact other ISA providers and confirm the value of your APS allowance, so you can start using it with M&G.
Once you've completed your application form, please send it to us at:
M&G Securities Limited
PO Box 9039
Chelmsford
CM99 2XG
Once we have received one or more of the above forms, we will send you a confirmation receipt and let you know what will happen next depending on the option you have chosen.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed here should not be taken as a recommendation, advice or forecast.
Further information
M&G Investment Management Limited (MAGIM), M&G Alternative Investment Management Limited (MAGAIM), M&G Securities Limited (MGSL) and M&G Financial Services Limited (MGFS) are registered in England and Wales under numbers (936683, 2059989, 90776, 923891) respectively. The registered address of MAGIM, MAGAIM, MGSL, and MGFS is 10 Fenchurch Avenue, London, EC3M 5AG. MAGIM, MAGAIM, MGSL, and MGFS are authorised and regulated by the Financial Conduct Authority (“FCA”) under numbers 119328, 122011, 122057, 122058 respectively.
