Tax credit declaration of surrender of endowment policy.

Ivo

Hi,

I am self employed and have not earned any income over the last year, I have been working on a project that I hope will provide in an income this year. I have been working over 40 hrs a week.

I have just received my tax credits annual declaration (TC603D)

During the initial weeks of my self employment my tax credit claim needed to go to appeal, to help cover living costs during this period I surrendered an endowment policy (house being sold some years ago).

The policy was eighteen years old and I received £14k (it was a 25 yr policy) Premiums amounted to just under £9.5k.

As I understand it because the policy was over 10 years old, I will not need to pay income tax, however I am unsure if this should be declared as 'other income' for the tax credit form.

My total savings did not amount to more than £14,500.00


Any help would be much appreciated.

Ivo