Re-investment of Maturing Endowments

joe_fattouche

My endowment with Standard Life is maturing shortly (end of January 2012) and I was told that if I instructed Standard Life before the maturing date to re-invest with them the proceeds of the maturing endowment, then the income paid out and any future capital appreciation of the new fund would be tax free.
My queries are:
1) Do I have to re-invest with the same endowment provider or can I choose another one?
2) How do I go about choosing another fund to re-invest these proceeds?
3) What is the choice of types of funds I can re-invest in? (Unit Trust Funds, Life Trust Funds, Investment Funds, ...)
4) Can you advise on a number of good funds to re-invest these proceeds?

dunstonh

I was told that if I instructed Standard Life before the maturing date to re-invest with them the proceeds of the maturing endowment, then the income paid out and any future capital appreciation of the new fund would be tax free.

That is incorrect.

If you roll the maturity into another life policy (which would be a single premium whole of life assurance or single premium endowment) then it remains with the same taxation which is tax paid. Never tax free.

1) Do I have to re-invest with the same endowment provider or can I choose another one?

There are no mainstream monthly premium endowment providers available and that isnt what the rollover rules relate to. There are not many single premium endowments nowadays either. Most have moved to non-qualifying, single premium whole of life assurance plans nowadays.

2) How do I go about choosing another fund to re-invest these proceeds?

Why would you want to? I cannot see any reason for using rollover tax rules.

3) What is the choice of types of funds I can re-invest in? (Unit Trust Funds, Life Trust Funds, Investment Funds, ...)

Depends on your provider of choice. Some use life funds. Others allow unit trusts/ITs/ETFs/Shares within the life assurance tax wrapper.

4) Can you advise on a number of good funds to re-invest these proceeds?

I dont see the point as the purpose for you doing this is based on incorrect information.

holly_hobby

Additionally we aren't able to give you any investment advice - a full personal and financial assessment must be made, with suitable recommondations made following this.

The tax position has already been advised by Duns.

Hope this helps

Holly