How Bereaved Spouses Can Use Additional Permitted Subscription for ISAs

By the Editorial Team · Wednesday, September 16, 2026

Surviving spouses or civil partners can use the Additional Permitted Subscription (APS) scheme to inherit their deceased partner’s ISA funds without affecting their own £20,000 annual ISA allowance. This allows them to invest an equivalent amount on top of their limit, but interest rates and access terms vary widely among providers, so careful comparison is crucial to maximize returns.

Savers who have lost a spouse or civil partner may be eligible for an additional tax-free savings allowance through the Additional Permitted Subscription (APS) scheme, which allows them to inherit their partner’s Individual Savings Account (ISA) funds without impacting their own annual ISA limit. This provision enables surviving spouses or civil partners to contribute an amount equivalent to the deceased’s ISA holdings on top of their own annual ISA subscription limit, currently set at £20,000.

To benefit from the APS, individuals must obtain certificates from the original ISA providers confirming the value of the deceased’s ISA holdings at the time of death. This certificate then permits the surviving spouse or partner to open or top up an existing ISA in their name by the amount inherited. It is important to note that not all providers accept APS subscriptions, and detailed information can be difficult to find on provider websites.

Interest rates on APS-eligible accounts vary significantly, with some providers offering considerably lower returns compared to standard ISA products. Many major banks and building societies accept APS subscriptions only in their easy-access ISA products, which may have interest rates substantially below what is available on the wider market.

Among the largest building societies, Nationwide restricts APS investments to its one-year Triple Access ISA, which offers 3.3% interest but limits withdrawals to three per year and reverts to a low instant access rate after the fixed term. Skipton and Coventry provide dedicated APS accounts paying around 2.05%, whereas Leeds Building Society does not accept APS contributions. Yorkshire Building Society offers more competitive options, including an easy-access ISA at 3.6% and a one-year fixed-rate ISA at 4.4%.

Banks such as Lloyds, Halifax, Santander, HSBC, NatWest, and Barclays generally allow APS investments only in their easy-access ISAs but tend to offer lower interest rates compared to Building Societies. For example, Lloyds’ Cash ISA Saver yields as little as 0.75%, while HSBC’s Loyalty Cash ISA can pay up to 3%, although access to this product requires an HSBC current account. Barclays and NatWest also feature fixed-rate ISAs suitable for APS funds.

Some non-traditional providers offer higher rates on easy-access ISAs accepting APS investments. Trading 212 offers a 4.61% rate for the first year, and Virgin Money’s Double Take E ISA pays 4.15% with a two-withdrawals-per-year limit. National Savings & Investments’ Direct ISA currently offers a 3.8% rate.

Once an ISA is opened with APS funds, it functions as a regular cash ISA and can be transferred between providers according to the usual ISA transfer rules. Savers are advised to carefully compare rates and terms, as sticking with the original provider after bereavement may lead to lower returns in some cases.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.