tax on endowment cash in

freddieboyfly

Hi. I also have an endowment policy and unfortunately due to redundancy at the end of the month i have no choice but to cash it it. It was a 15year policy so it run for almost 13. I have been told its worth 44000 and 28000 of that is my payments in. Im a higher rate tax payer at 40% so am i right in thinking i have to pay tax on the 6000 its made and if so, at what percentage rate will i have to pay tax on this?? Many thanks. Nick

opinions4u

Assuming it's a "qualifying policy", which it probably is, there will be no further tax to pay.

Herongull

Don't cash it in.

You can get more money for it by selling the policy on. There are brokers or whatever that buy "2nd hand" endowment policies. As it only has 2 years to run it will be quite valuable.

Don't know exactly how you get the best price, but get several quotes. Perhaps others here can tell you more.