Surrendering Endownments, any tax?

sastek

Hi all,

I need to surrender (cash in) 2 endownment policies and want to ask if anyone knows the tax implications if any? I believe that they are qualifying, but are they classed as income for tax purposes? I am currently a non taxpayer, but if the cash in is classed as income then I will have to pay income tax.

Policy 1 - started 1989, ends 2014, made paid up in 2005
Policy 2 - started 1992, ends 2014, made paid up in 2005

r192

there is no tax to pay on surrendering or maturing endowment policies

dunstonh

Clarification to post #2.

There is tax to pay on surrendering endowments if the policy is non-qualifying or has yet to qualify. There is no tax to pay on endowments which have met qualifying criteria.

Both of the plans mentioned have qualified. So, as long as they are qualifying, there will be no tax.

sastek

Many thanks for the replies, I'll double check that they are qualifying