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Surrender Endowment, will I pay tax?
DogTailRed2
Posts: 33 Forumite
Hi,
searching the forums and reading the HMRC tax website has me confused. So I would like to ask the following question.
I have two With Life Endowment Policies. They have been running for 21 years and have 4 years left to run. I pay £40 pcm and their total surrender value is £19'000. I would like to surrender these two endowments.
Will I pay tax?
Thanks.
searching the forums and reading the HMRC tax website has me confused. So I would like to ask the following question.
I have two With Life Endowment Policies. They have been running for 21 years and have 4 years left to run. I pay £40 pcm and their total surrender value is £19'000. I would like to surrender these two endowments.
Will I pay tax?
Thanks.
0
Comments
-
If they are qualifying plans then you will pay no tax as they have met the qualifying requirements. If they are non-qualifying plans then you may pay tax if you are a higher rate taxpayer or you are taken into higher rate tax by the chargeable gain (after top slicing relief applied).
Most endowments are qualifying. Only a minority are non-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 -
Thanks for the reply.
I will assume they are Qualifying, however how can I determine if they are Qualifying or Non Qualifying plans?0 -
Ask the life office.
They could have started out as qualifying policies, but if any changes have been made to make them non-qualifying the insurer is probably the only one who can confirm this.I 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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