Tax question on Scot Am maturity

hansi

I recently received a cheque from Prudential in payment of my endowment maturity. At the bottom of the letter it states" The Company certifies that the Income Tax deducted has been or will be accounted for to the Inland Revenue"

Dos this mean that I am liable to pay tax on this payment?

Owain_Moneysaver

Not at standard rate, as standard rate tax has been paid.

If you are a higher rate taxpayer you may have extra tax to pay at the year end on it.

dunstonh

There is no tax to pay on maturity on qualifying endowments. Even if you are a higher rate taxpayer.

The only time there may be on qualifying plans is if the maturity is slow getting to you and they add interest for the days it is delayed.

hansi

Thank you:T

stulaunch

Hansi

Was your endowment far off reaching its total? My scot amic one is up later this year and has fallen behind in recent years.

I did hear that they had grown a bit in the last year, just wondered it that was the case for you.

hansi

Just £616 short so not too bad considering how other companies have performed:mad:

stulaunch

hansi wrote: »

Just £616 short so not too bad considering how other companies have performed:mad:

Cheers, thats good to hear.

dunstonh

hansi wrote: »

Just £616 short so not too bad considering how other companies have performed:mad:

So, in the end you have finished a little better off with the endowment then (endowment mortgages were typically 5-10% cheaper than repayment mortgages). Not the end result you wanted but not as bad as some.