Chargeable Event Certicicate

coffeedrinker

My life endowment policy has just matured and the amount received will be £32,000.

It is non-qualifying for tax purposes, but the letter I received states that I may be sent a Chargeable Event Certicicate.

The policy was paid over 25 years and I estimate that the total premiums paid over this time amounts £15,500.

I therefore assume that my gain is £16,500.

I earn £40,216 and have a tax code of 668L

Will I have to pay any tax on the gained amount?

Any help will be gratefully received!

ceeforcat

I think that you would be much better placed to remind us when you receive the certificate. These are notoriously complicated. There is also the possibility of 'top slicing relief' being available which could negate any tax charge - really need the figures though.

Having said that, I would be surprised if there is a chargeable event on this policy. Standard letter from the insurance company?

coffeedrinker

I have now received my Chargeable Event Certificate. It states:

Maturity Value: £32000
Total Premiums Paid: £14749
No of Years : 25
Total Gain On This Event: £17215
Income Tax Treated as Paid (20%): 3451

Bearing in mind my salay of £40216 and my tax code of 668L, will I have to pay any additional tax on this gain?

Many thanks.