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Endowment Capital Gains Tax ?
CC62
Posts: 2 Newbie
I am thinking of surrendering a unit linked endowment policy and gifting the proceeds to my children, does anyone know if I would be liable to pay capital gains tax on this or indeed to you pay capital gains tax on an endowment policy?
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Comments
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If your policy is surrendered within the first 10 years - or 75 per cent of the policy's term if sooner - then the gain could be liable to income tax.0
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The policy is over 10 years old with 5 years to run. Does this mean that it is not liable to capital gains tax?0
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endowments are never liable to capital gains tax. Its one of the advantages of the life assurance tax wrapper. The only tax it is potentially liable for is higher rate tax if it has yet to qualify. With over 10 years history, it qualifies. So, no further tax to pay on surrender.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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