Unknown CashISA Limit Override: Sylvia Morris Reveals a Hidden Rule to Surpass Allocated Limit
In the UK, surviving spouses or civil partners of deceased Cash ISA holders can benefit from the Additional Permitted Subscription (APS), a government-backed provision that allows them to save an extra amount, equivalent to the value of their late partner's ISA, in addition to their own annual ISA allowance.
The APS can be used broadly within three years from the date of death, providing some flexibility for estate administration. However, it's essential to note that APS does not count towards the current year's £20,000 Isa allowance but comes on top.
While some providers, like National Savings & Investments, accept the APS and offer attractive rates such as 3.5% on their Direct Isa, others do not. For instance, Santander offers Cash ISAs but does not specifically mention APS in their materials. Nevertheless, as APS is a general provision, it is generally applicable across different providers. To get detailed information on APS with specific providers, it is best to contact them directly.
Unfortunately, many popular providers do not accept the APS, including Marcus, Shawbrook Bank, Paragon, Charter Savings Bank, Kent Reliance, Leeds BS, Close Brothers, Cynergy, Ford Money, Hodge Bank, Secure Trust, Vida Savings, United Trust Bank, Tembo, Chip, Moneybox, and Plum. On the other hand, the big banks that do accept the APS include Barclays, Halifax, HSBC (only if you have a current account with it), Lloyds, NatWest, Santander, and Virgin Money.
With the potential cut to cash Isas by Rachel Reeves, it's crucial for surviving spouses to maximize their benefits now. To do so, they can use the APS to open an Isa in their own name, taking advantage of the tax-free savings it offers.
It's essential to remember that the APS can only be claimed if you request a certificate from each of your late partner's Isa providers. If you choose to use the same provider as your late partner, they have the discretion to accept or reject the APS.
In summary, the APS is a valuable benefit for surviving spouses or civil partners who have lost a partner with a Cash ISA. By understanding the eligibility criteria and the providers that accept the APS, you can make the most of this opportunity to boost your savings.
The surviving spouses or civil partners of deceased Cash ISA holders in the UK can benefit from the Additional Permitted Subscription (APS) by using it to invest in a tax-free savings account, thereby increasing their personal-finance. However, it's important to note that the APS is not included in the current year's £20,000 Isa allowance but comes on top, offering some added flexibility to their personal-finance portfolio.
