Selling an Endowment Policy

iboy

Hi,
I have been going around in circles trying to work out the answer, but so far had no luck. Hopefully my fellow savers can help.

In 1982 my mother took out a 48 year (no, not a typo) endowment policy in my name. She paid all the premiums until I took over making the payments. Premiums were due 4 times a year and were always paid. There were no changes to the policy.

In October 2014 I sold the policy via a commercial endowment selling auction company. I am now trying to work out if I need to declare anything on my 2014-2015 tax return. Can anyone help?

Here are the details.
It was an Endowment Assurance policy with profits for £2000.
Started May 1982. Due to mature May 2030.
Premiums paid at time of sale £1404.
Sale price was £5370.

The insurance company will no longer talk to me (as I don't own the policy), but I believe the policy is "qualifying" as it was taken out before 1984. However, I have no way of confirming this.

The insurance company have also sent me a Chargeable Event Certificate with the following details:

"The policy is a UK life insurance policy on which basic rate tax is treated as paid.

Type of Event: Whole Assignment
Number of years: 32
Total previous gains: £0
Premiums paid: £1404
Relevant capital payments: £0
Value of parts previously assigned: £0"

From reading the HMRC Helpsheet 320 I believe the policy was qualifying and no gain arises (this is taken from the helpsheet)...

"No gain arises when a qualifying policy matures, pays out on death,
is surrendered or sold if:
• the policy has run for at least 10 years
• there have not been any changes to it, and
• all premiums have been paid when due."

I should add that I am a higher rate tax payer.

Is anyone able to confirm if I am on the right track? Do I need to declare anything on my tax return and if so what?

Any guidance or pointers in the right direction would be fantastic.

iboy

Thoughts anyone??

I'm thinking of saving a copy of the HMRC factsheet with some notes, then claiming the policy is "qualified" on my tax return. That way if I do get a visit from HMRC I have some evidence of why I made the decision I did.

Is that a reasonable approach when dealing with HMRC?