Endowments,tax and student finance...

micky_123

Here's a complicated question.When your endowment policy matures are you liable for tax on it even if you are using it to pay off your morgage?Part 2 of this question is do you need to include it in your supporting application for your childrens means tested student finance as income.Help

sheslookinhot

micky_123 wrote: »

Here's a complicated question.When your endowment policy matures are you liable for tax on it even if you are using it to pay off your morgage?Part 2 of this question is do you need to include it in your supporting application for your childrens means tested student finance as income.Help

1. No tax payable on maturity.

2. If it has not yet matured, then no need to include it on application. Only savings account deposits need be declared.

dunstonh

As long as its a qualifying endowment policy there will be no further tax to pay. If its a non-qualifying endowment policy then there could be.

Endowments are life policies and life policies do not need to be included in any means test. Once they mature and if don't roll over into another life plan within 30 days (i.e. you take the money and pay it into your account and keep it there) then they have to be declared on future means tests as they are no longer exempt.