Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

The “Inherited ISA” Rule Explained

11 Mar 2026 · 0 min

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0:26

In this segment, the presenter explains a little‑known tax provision: when a partner dies, the surviving partner can claim the deceased partner’s Individual Savings Account (ISA) allowance for up to three years, effectively gaining an additional £40,000 of tax‑free allowance. While acknowledging the sad circumstances that trigger this rule, the speaker emphasizes that it’s useful information, informally referring to it as an “inherited ISA.” The explanation is brief, conversational, and aimed at helping viewers understand both the mechanics and the practical relevance of the rule.

In fact, this is a good point to mention. It's a bit sad, but it's also something that is true. If your partner dies, for the next 3 years you can actually claim their ISA allowance. You can use up the ISA allowance. That means you get £40K. Now, we're not hoping for any of that, and I'll borrow your words, I'll say, God forbid. But it's good to know, it's good to know that, okay, if that happens, I call it inherited ISA. That's not the official term, but you have an ISA allowance of £40K.