In the 2014 Autumn Statement, George Osborne announced new rules allowing ISA assets to be passed on to surviving spouses with the related tax benefits when a saver dies.
This is done in the form of an additional ISA allowance – the surviving partner is given an Additional Permitted Subscription (APS), a one-off ISA allowance equal to the value of the ISA at the date of the holder’s death.
These changes have been introduced to ensure that bereaved individuals can continue to benefit from tax advantages they had previously shared with their partner, offering more flexibility and a more equitable outcome.