Do I pay tax on endowment proceeds?

Climberjohn

I have an endowment from 1987 maturing next month.

All payments made 25 years x 12 months x £39.40 = £11,820.00
Final statement says I'll get £23,052.69 (£11,008 assured, £7,299.81 bonueses, £4,744.88 final bonus)

I'm a 40% tax payer (this year, not throughout). Will I have to pay tax?

If I do, is there any way to mitigate it?

Thanks for your help.

holly_hobby

No - as a qualifying policy, that has met (from the info given) the min qualifying requirements, the payment is free of tax ..... don't spend it all in one shop !!

Hope this helps

H

annie1975_2

We have just had 2 endownments matured in february(had since 1987)...We didnt pay tax. By the sounds of it ,it sounds similar to ours..Sum assured, bonus and final bonus.
Who was it with? Give them a call to confirm its tax free.But I am 99.9% sure it will be...

happy spending.

McKneff

Annie1975 is 100% correct, no tax is payable on an endowment payout.