Surrendering endowment within 10 years

Reaper

I heard that if I surrender an endowment before 10 years is up I may be liable to tax.

Would that come under capital gains tax (in which case my personal allowance should cover it) or income tax?

Reaper

Found the answer myself in the end. It's capital gains tax on the maturity value less the premiums paid. Which means I should be able to surrender it tax free as the gain is less than my capital gains allowance.

Anya

Glad you worked it out - you had me panicking then as we are on the brink of surrendering ours!

Thanks for that !!

montrose_2

Hi to everyone
This is my first time using this service so please bare with me.
I have decided to surrender my endowment after seven years, but find the whole process a nightmare and find it difficult to get any impartial advice, and how on earth do you know if you are getting a fair or good deal from all the companies claiming to give you the best deal on the internet!!!
help needed from anyone with experience or expertise
Montrose

dunstonh

If you want advice, then see an IFA.

The term endowment covers around 15 different types of policy and within those you have a variety of terms and conditions that differ from company to company and within their own plan range as well (different versions over the years).

If you want advice, then details about your endowment need to be known. After that information is sourced from the insurance company, then an assessment can be made as to what your options are and the costs involved with each. Then you can see what is best for you or not.

Without any of that information though, no-one can help you.