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Endowment policy Tax

If I pay off the interest part of the mortgage and keep the endowment running it full term. Would the endowment policy be liable of any tax at that time?

Any advice greatly appreciated. :o

Comments

  • dunstonh
    dunstonh Posts: 121,175 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If held to maturity, there is no liability to tax regardless of the growth achieved.
    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.
  • motch
    motch Posts: 429 Forumite
    I have a endowment policy which I want the money from to pay other debts.
    I'm confused on the tax issue :confused: will i be liable to pay tax ie 20 % of approx £4,000 ? can someone possibly explain the situation regarding the tax issues. I earn approx £17k policy 9 years old

    any help appreciated
  • dunstonh
    dunstonh Posts: 121,175 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You will also have no tax liability because although surrender would create a chargeable event, top slicing of the miniscule returns you would have on a CIS policy would take you nowhere near higher rate tax.
    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.
  • motch
    motch Posts: 429 Forumite
    thanks dunstonh

    so I should have 0 or very little tax to possibly pay on it
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