Endowment Concerns Q2

jam_jar123

I hope someone can help with this question also. If I decide to reinvest my endowment (if the value is low ++) once it matures, and I kept it going for a further 2/3 years - would it be tax free like my endowment would have been?
Say it is valued at £24k at maturity but goes to £34k in 2/3 years, would the 1st £24k be tax free?
The mortgage term would need to be extended to the max which I think is 5 years, and pay off on repayment basis.

Old_Lifer

When your endowment reaches the maturity date it then ends and you receive your money.   Where you put the money after that is up to you.

kingstreet

IIRC the option to leave the proceeds of a qualifying policy invested in a 'tax-free' fund ended in around January 1988.

Old_Lifer

Generally speaking,    mortgage  endowments are designed  to be qualifying policies and are tax-free  at maturity  and  if you have paid the same  premium each month throughout the term this will not change.     

dunstonh

If you reinvested you would typically use an S&S ISA as the first option.  That is tax free (so a married couple can do £40k).   Next in the pecking order is unwrapped UT/OEICs.    Potentially, pension may be a viable option but it depends on age and circumstances.

jam_jar123

Thanks for the replies. I'm single and in my early 50s. I work for the nhs and can retire at 60. My nhs pension pot is modest as I did part time hours when my kids were born. I'll look into the pension side of things. I'd heard of unit trusts but not of OEICs.