With Profits Endowment

fireballxl5_2

I have just become self employed and was wondering whether or not I Will have to declare the profits from my endowment policy to the Inland Revenue.
Any advice would be very much appreciated.

Thanks guys.

dunstonh

Providing it is still running, then gains do not need to be declared. Only if you create a chargeable event will the potential to pay further tax.

fireballxl5_2

Sorry being stupid here, what is a chargeable event?

dunstonh

a chargeable event is one of the triggers that can cause a tax liaiblity. Surrender being one such example. However, there are ways to avoid a chargeable event and they really only effect higher rate taxpayers or those that are close to higher rate. Endowments already have tax deducted at source at amount that satisfies HMRC for basic rate taxpayers or lower.

markdavey

dunstonh wrote: »

a chargeable event is one of the triggers that can cause a tax liaiblity. Surrender being one such example. However, there are ways to avoid a chargeable event and they really only effect higher rate taxpayers or those that are close to higher rate. Endowments already have tax deducted at source at amount that satisfies HMRC for basic rate taxpayers or lower.

Hi Dunston,

I was just about to ask a similar question, my mum has a long term Sun Life policy that is due to mature this august, is she liable for tax on the maturity value (i.e. do we need to declare it)?

Thanks in advance.

dunstonh

not on a maturity as it would have qualified.