Three trade bodies have published guidelines to help advisers talk their clients through the new rules for passing on the Isa allowance.
Tisa, the British Bankers Association and the Building Societies Association have joinced forces to create the guidance, to explain how from 6 April 2015, additional Isa allowances can be obtained following the death of a spouse or civil partner.
The new rules give the surviving spouse an additional permitted subscription (APS), a one-off Isa allowance, equal to the value of the deceased’s Isa savings at the date of death, without this amount counting against the normal Isa subscription limit.
The guidance explain the APS allowance can also be used with the deceased’s Isa provider or another Isa provider.
Not all Isa providers will accept APS allowance subscriptions, but they are obliged to pass relevant APS allowance information on to another Isa provider.
Carol Knight, operations director at Tisa, said: “We see it as a much fairer outcome and is one we have long advocated.”
What Next?
You can also learn more about the new Isa rules, and earn CPD, by reading sister publication FTAdviser’s Guide to Isas and Pension Freedoms. Visit www.ftadviser.com/training.
