The Additional Permitted Subscription (APS) allows a husband, wife, or civil partner to inherit a tax-free allowance up to the value of their partner's ISAs, on top of their usual £20,000 limit.

For those who have lost a spouse or civil partner, understanding the financial options available can be a practical help during a difficult time.

Even if this doesn’t apply to you right now, it’s worth knowing about, especially if you or your partner have significant savings in ISAs. Here’s what the APS rule means, who can use it, and how it works in practice.

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What is the ISA Additional Permitted Subscription (APS)

The APS lets you keep the tax-free benefits of your loved one's ISA savings by allowing you to pay into your own ISA up to the value of their ISAs, on top of your own annual ISA allowance. That’s the value of their ISAs, not the allowance they hadn’t used.

Your APS allowance is the higher of:

• the value of their ISAs on the date they died, or

• the value when their ISA stopped being a “continuing ISA” (see below).

If you pay in any of your APS based on the date-of-death value before the continuing ISA ends, you can’t later ask for the APS to be based on the later value, even if it’s higher. Your ISA provider can tell you which values apply. See HMRC’s guidance on additional permitted subscriptions.

For example, if your partner had £50,000 in their ISA when they died, you could pay up to £50,000 into an ISA of your own through the APS, on top of your £20,000 allowance for that year. If their ISA had grown to £52,000 by the time it stopped being a continuing ISA, and you hadn’t used any of your APS before then, your APS could be £52,000 instead.

The APS allowance is applicable even if the money in the deceased's ISA is left to someone else.

The surviving spouse or civil partner has until three years after the death, or 180 days after the estate has been fully administered if that's later, to use the APS for cash subscriptions. If the deceased's ISA investments are being transferred across directly, the deadline is 180 days after they pass to the survivor.

Alex King, accountant, financial coach, and founder of the personal finance platform, Generation Money, said: “This is a really valuable opportunity to hold onto more of your wealth tax-free, but many people aren’t aware of it until it’s too late to make the most of it."

What happens to an ISA when you die?

An ISA carries on earning interest after the holder has died and it becomes a "continuing ISA".

This status ends three years after death, when the administration of the estate is completed, or when the ISA is closed, whichever comes first.

During this time, no new contributions can be made, but any interest generated is free of income tax and capital gains tax.

If you are married, your partner can invest up to the value of your ISA tax-free using an 'Additional Permitted Subscription' (APS), plus their own standard allowance.

For example, if a wife died with £80,000 in her ISA, her husband could pay up to £80,000 into an ISA through the APS (or more, if her ISA was worth more when it stopped being a continuing ISA), on top of his own £20,000 allowance.

From 6 April 2027, people under 65 will be able to put a maximum of £12,000 a year of their own £20,000 allowance into cash ISAs. When we checked in October 2026, HMRC hadn't yet said how this limit will apply to APS subscriptions. It plans to publish updated guidance for ISA providers before April 2027, so check with your provider before relying on putting APS money into a cash ISA.

Read more: Savings Accounts Guide

Can I use my partner’s ISA allowance after they die?

The Additional Permitted Subscription (APS) is only available to a spouse or civil partner of the person who has died. This is a specific legal relationship. Long-term partners or cohabiting couples who weren’t married or in a civil partnership do not qualify, even if they lived together for many years.

However, the deceased must have been living with their spouse or civil partner at the date of the death. They must not have been separated under a court order, Deed of Separation, or in circumstances where the marriage or partnership had broken down, according to Gov.uk.

You must have been living together as spouses or civil partners when they died. According to GOV.UK , this means 'not separated under a court order, under a deed of separation, or in circumstances where the marriage or civil partnership has broken down'.

How does APS work?

To apply for the APS, the deceased's partner must first register the death with their loved one's ISA provider.

The partner should then apply for the APS with the ISA provider where the money will eventually end up. So say, for example, the husband and wife use different ISA providers and the deceased's partner wants to add the extra funds into their current ISA. Not all ISA providers accept APS subscriptions, so check first.

Mr King added: “Keep in mind, the additional ISA allowance doesn’t automatically transfer. You’ll need to apply through your ISA provider.

“Also, remember the APS can be used as a lump sum or in instalments, and it doesn’t have to go into the same type of ISA your partner held. So if they had a Cash ISA but you prefer a Stocks & Shares ISA, you’ve got flexibility... Being aware of this rule and how it works can help you hold onto more of your family’s wealth at a time when every bit of stability helps.”

From 6 April 2027, under-65s will be limited to £12,000 a year in new cash ISA subscriptions, with the rest of the £20,000 allowance available for other types of ISA. How this applies to APS subscriptions hadn't been confirmed when we checked in October 2026. Cash ISAs and Stocks and Shares ISAs serve different purposes and suit different time horizons, objectives, and attitudes to risk.

Note, the deceased's partner will need to prove they were living with them when they died. (If they were in a care home and still legally married this is still fine).

It’s up to the ISA provider to be satisfied the couple were still together. If there’s any doubt, they may refuse the APS allowance to avoid falling foul of HMRC rules.

To assess eligibility, the ISA provider may ask for:

• Proof of address (e.g. council tax, utility bills)

• A letter of explanation

• Possibly a statutory declaration confirming you were still together (emotionally and practically) and/or

• a note from a solicitor or executor

This article is general information only and does not constitute financial advice. If you are unsure which ISA type is appropriate for your circumstances, consider seeking independent financial advice.

Read more on ISAs:

• Cash ISAs and stocks and shares ISAs compared

• ISA Rates: Maximize Your Tax-Free Allowance

• Average Household Savings & Wealth UK