Increasing Endowment payments

Ex_karls

I have received a Red letter from my Endownment Provider stating I must increase my monthly payment to double the amount else there may be TAX implications.
If I do not increase the payment, the Endownment policy loses its Tax "qualifying status"
Can anyone tell me what the tax implications are, as when I phoned up the company, they were very vague, only saying I may have to pay tax on the endownment,
Incidentially, I have already paid off the mortgage as I coukld see there was going to be a large shortfall

maninthestreet

Sounds like complete nonsense to me. Is this a With Profits policy? There may be tax implications if you do INCREASE your payments and you are a higher rate tax payer. There can be no tax implications as a result of you NOT increasing you payments, regardless of whether or not the endowment fails to meet expectations. As you've paid off the mortgage, the endowment is surplus to requirements, other than the life assurance it provides.
Whoever this endowment provider is needs to be named and shamed.