Transmission of ISA

Transmission of ISA

Didn't find your answer?

Can there be a seamless transfer of an ISA held by a deceased spouse to the surviving spouse? I suspect not but just thought I'd ask.

Replies (4)

Please login or register to join the discussion.

By The Grammar Police
07th Feb 2016 22:19

No.
ISAs are personal.

No.

ISAs are personal.

Thanks (1)
avatar
By qhas
07th Feb 2016 22:28

ISA

The Grammar Police wrote:

No.

ISAs are personal.


Thank you
Thanks (0)
avatar
By DMGbus
09th Feb 2016 09:02

March 2015 announcement

Who is likely to be affected?
Spouses or civil partners of deceased Individual Savings Accounts (ISA) savers.
Banks, building societies and other financial institutions that offer ISAs.
General description of the measure
This measure will enable the spouse or civil partner of a deceased ISA saver to benefit from an additional ISA allowance, and therefore to have more of their savings tax advantaged. Individuals will be permitted to save an additional amount in an ISA (or ISAs), up to the value of their spouse or civil partner’s ISA savings at the date of death, without this amount counting against the normal ISA subscription limit.
Policy objective
The measure will recognise that many couples save from joint income, and will help bereaved individuals secure their financial future and enjoy the tax advantages they previously shared, following the death of their spouse or civil partner.
Background to the measure
This measure was announced at Autumn Statement 2014.
This Tax Information and Impact Note (TIIN) updates the TIIN published on 20 January 2015.
Detailed proposal
Operative date
The measure will have effect from 6 April 2015 in respect of deaths on or after 3 December 2014.
Current law
The rules which apply to ISA accounts are set out in the Individual Savings Account Regulations 1998 (SI 1870/1998) (ISA Regulations). These regulations limit the amount which can be subscribed to an ISA in a given tax year, require ISA subscriptions to be made in cash (subject to specified exceptions) and provide that an individual may subscribe to a maximum of one cash ISA and one stocks and shares ISA in each tax year. ISA Regulations also set out the circumstances in which a subscription must be disregarded for the purposes of the annual ISA subscription limit. Requirements in relation to the annual reporting of information by ISA providers to HM Revenue and Customs (HMRC) are also set out in these regulations.

The effect of the current rules is that when an ISA saver dies, their spouse or civil partner can only invest any inherited savings in their own ISA subject to the normal annual subscription limit. In addition, an individual cannot transfer to their own ISA any non-cash assets (such as stocks and shares) they inherit from a deceased spouse or civil partner.
Proposed revisions
The ISA Regulations will be amended to provide an additional ISA allowance for the spouse or civil partner of an ISA saver who died on or after 3 December 2014. The amount of this allowance will be equal to the value of the deceased person’s ISA savings at their date of death, and will be in addition to the surviving spouse or civil partner’s normal ISA subscription limit. Regulations will set out the time period within which this additional allowance can be used, as well as other rules, including those concerning:

 the eligibility of the surviving spouse or civil partner to the additional allowance
 the process for making additional subscriptions; and
 the option, in certain circumstances, for an individual who is eligible for the additional allowance to transfer to their own ISA non-cash assets previously held by their deceased spouse or civil partner
 

Thanks (0)
avatar
By rwb
09th Feb 2016 10:50

Agree with DMGbus.

You can now move ISA savings across from one spouse to another - so if say, both H&W held £50k each you end up with the survivor holding the whole £100k in their own ISA wrapper. The process works by extending the survivors allowable contributions by the amount the deceased partner had saved I believe.

Don't expect it to be 'seamless' though - went through the process for my great aunt around May of last year and it was a bit of a nightmare (largely because, although it was allowed, the bank seemed to have no process in place to actually do it! - that may have improved now though...)

Thanks (0)