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endowment due to mature, tax due?
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sm1862
Posts: 8 Forumite
Hi
This is my first post to MSE, I hope you can help.
We took out an mortgage in 1992 and subsequently changed to repayment but kept the endowment.
We were lucky to be able to clear our mortgage a couple of years ago.
Our endowment is due to mature in 2017, my question is will be have to pay tax on the full amount we receive?
Thanks in advance.
This is my first post to MSE, I hope you can help.
We took out an mortgage in 1992 and subsequently changed to repayment but kept the endowment.
We were lucky to be able to clear our mortgage a couple of years ago.
Our endowment is due to mature in 2017, my question is will be have to pay tax on the full amount we receive?
Thanks in advance.
0
Comments
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No tax to be paid at all,..... enjoy....make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
No tax to pay on maturing endownment policies.0
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Don't forget though, an endowment is like a life insurance. If anything happened to whoever is on the mortgage it would have paid out and you could have cleared the mortgage.
Once it has matured you will no longer have the life insurance so you may have to take some out to cover you on your repaymentmake the most of it, we are only here for the weekend.
and we will never, ever return.0 -
oooh, thats great news. I didnt think tax was due but had a niggly feeling so I thought i would ask the experts :-)0
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Glad we have put a smile on your face.....make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
It is the life insurance element that makes it a qualifying policy on which no tax is due on maturity.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Provided it was a qualifying policy and you've made no alterations to it to affect its qualifying status, any tax due has been met by the life fund in which the policy monies are invested.
If it has been altered and become non-qualifying the proceeds may become taxable in the hands of a higher-rate taxpayer.
It would be worth checking with the insurer if you have any doubts.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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