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Endownment maturity and Capital Gains Tax
Tearsforfears
Posts: 1 Newbie
I have just received an endowment payout of £107k, ;-). The with profits endowment was taken out in 1991 the sum assured on the policy was £40,000. with my monthly contributions being £63 p/m of which I did not miss nor did they change over the 25yr period. I stuck with it for the term and it has matured with a massive terminal bonus.
As far as I can ascertain this makes it a qualifying policy with regards to Tax exemption however for some reason, and I cannot remember when and where, I seem to recall that if the maturity was over £100,000 capital gains tax may need to be paid.
Do anybody know if I will have to pay any CGT and if so what the % tax rate would be and on what amount? I am a basic rate tax payer and earn approx 40K a year. The actual policy is
a " Low cost endowment assurance with profit". The policy included life insurance. As I understand it the policy was "qualifying" as it was over 10 years and a fixed payment that ran its term.
As far as I can ascertain this makes it a qualifying policy with regards to Tax exemption however for some reason, and I cannot remember when and where, I seem to recall that if the maturity was over £100,000 capital gains tax may need to be paid.
Do anybody know if I will have to pay any CGT and if so what the % tax rate would be and on what amount? I am a basic rate tax payer and earn approx 40K a year. The actual policy is
a " Low cost endowment assurance with profit". The policy included life insurance. As I understand it the policy was "qualifying" as it was over 10 years and a fixed payment that ran its term.
0
Comments
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Income tax and capital gains tax are paid by the fund on the returns on the underlying investments of a qualifying policy so you would have no liability to either on maturity.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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