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Endowment Query
Winchmore_Hill_Shot
Posts: 49 Forumite
My wife and I took out an endowment policy when we took out a mortgage 24 years ago. Due to a change of circumstances we sold the house some years ago and began renting, we never got round to cancelling the endowment which now matures next year.
Neither of us knows anything about this area but wonder if anyone can tell us whether the payout is taxable and whether it counts as income for the purposes of child tax credit?
Thanks in advance for any help.
Neither of us knows anything about this area but wonder if anyone can tell us whether the payout is taxable and whether it counts as income for the purposes of child tax credit?
Thanks in advance for any help.
0
Comments
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Assuming it was a qualifying policy when you started it (which it should have been if it was a low cost endowment with the original intention of paying off a mortgage at the end of the mortgage term) then the gains won't be taxable.
I wouldn't have thought it would count for CTC either, but I am afraid I do not have specific knowledge on this point.0 -
It doesnt count for CTC as long as it is qualifying.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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CTC is purely income-based, assets are not considered.
Use the calculator and see;-
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htmI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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