Inheritance ISA - Key Features

The Financial Conduct Authority and the Prudential Regulation Authority are the independent financial services regulators. Monmouthshire Building Society is required to give you this important information to help you decide whether our Inheritance ISA is right for you. You should read this document carefully so that you understand what account you have chosen, and then keep it safe for future reference.

What is the purpose of this page?

The purpose of this page is to describe the key features of our Inheritance ISA product and to provide a balanced summary, so that you can make an informed decision.

Our Inheritance ISA allows surviving spouses and civil partners to inherit their deceased partner’s ISA allowance as part of an Additional Permitted Subscription (APS).

The Aims

  • To enable a spouse or civil partner to inherit their deceased partner’s ISA allowance through the Additional Permitted Subscription.
  • To ensure that the spouse or civil partner can continue to use the tax-free benefits that has been built up over time by the account holder who has passed away.

Your Commitment

  • To not exceed the Additional Permitted Subscription.

Risk Factors

  • The taxation of ISAs can be changed at any time by the Government without notice.
  • The interest rate payable could go down as well as up, depending on the general market interest rates and the Bank of England Bank Rate.

Your Questions Answered

What is an ISA?

ISA stands for Individual Savings Account. It allows your savings to grow-tax efficiently. There are four types of ISA available:

  • Cash ISA
  • Stocks & Shares ISA
  • Innovative Finance ISA
  • Lifetime ISA

Monmouthshire Building Society only offer Cash ISAs

Can I open a Cash ISA?

You can open a Cash ISA if you are:

  • Aged 16 or over and
  • Resident in the United Kingdom, or perform duties as a crown employee overseas or are in a marriage or civil partnership with such a person.

Accounts can only be opened in a sole name. Joint accounts are not permitted for ISAs.

What are the tax advantages?

Any interest earned on the Inheritance ISA will be free of personal UK Income Tax and Capital Gains Tax. You are not required to declare any interest for the Inheritance ISA on your Tax Return.

What types of Cash ISA do Monmouthshire Building Society offer?

An Inheritance ISA - a 30 day notice, variable rate Cash ISA which enables spouses and civil partners to inherit an Additional Permitted Subscription from the ISA account holder who has passed away. The Inheritance ISA is only available to the spouse or civil partner of a Monmouthshire Building Society Cash ISA account holder whose death has been registered with the Society and who passed away on or after 3rd December 2014.

The Society offers a Help to Buy: ISA account - a variable rate ISA designed to encourage first time buyers to save for a deposit to put towards their first home, where the Government will pay a 25% bonus on the final balance of the account, subject to Scheme Rules.

The Society also offers a variable rate Cash ISA.

Other ISAs may be offered from time to time and details are available on request from the Society's Head Office branch. Please note that products can be withdrawn or replaced at any time and without notice.

How much can I save in to a variable rate Cash ISA? (Not applicable to Inheritance ISA/Help to Buy: ISA)

  • The annual subscription limits to ISAs for the tax year 2018/19 are:
  • Overall maximum investment is £20,000.
  • Investors may subscribe to ONE Cash ISA, ONE Stocks and Shares ISA, ONE Innovative Finance ISA and ONE Lifetime ISA only in each tax year.

Investors have additional flexibility in deciding the balance of their investments provided they keep within the £20,000 annual subscription limit. ISA savings can be held in Cash, Stocks and Shares, Innovative Finance ISA or a Lifetime ISA in any combination that the investor wishes.

For example — an investor could subscribe:

  • £20,000 in a Cash ISA, £0 to a Stocks and Shares ISA, £0 to an Innovative Finance ISA and £0 to a Lifetime ISA.
  • £6,000 in a Cash ISA, £5,000 to a Stocks and Shares ISA, £5,000 to an Innovative Finance ISA and £4,000 to a Lifetime ISA
  • £10,000 in a Cash ISA, £0 in a Innovative Finance ISA, £10,000 to a Stocks and Shares ISA and £0 to a Lifetime ISA
  • £10,000 in a Cash ISA, £0 to a Stocks and Shares ISA, £10,000 to an Innovative Finance ISA and £0 to a Lifetime ISA.

Lifetime ISA's can be held alongside Cash, Stocks and Shares or Innovative ISA's and contributions will form part of your annual ISA allowance. Lifetime ISA's are subject to certain conditions and are not available through Monmouthshire Building Society. You can save up to £4,000 in a Lifetime ISA each tax year.

    Please note that your Additional Permitted Subscription for the Inheritance ISA will be equivalent to the value of the amount held in your spouse’s or civil partner’s ISAs when they passed away.

    Financial Services Compensation Scheme

    We are part of the Financial Services Compensation Scheme (FSCS). Details of the scheme, and who is covered by it, are available here.

    >> Click here to find out full product details of our Inheritance ISA.


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