Teachers Assurance (now LV) Guaranteed Savings Plan

Hi there

Wonder if someone can advise

I have one of the above savings plans and am looking to surrender and gain the cash. When I spoke to the woman at LV, she said it may be subject to tax deductions however I was of the belief this was a tax-free savings plan.

Can anyone thow any light? Nothing on the LV website, and all Teachers Assurance web pages are defunct. Cannot find original paperwork to check.

Thanks in advance,

Hannah

Replies

  • dunstonhdunstonh Forumite
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    I have one of the above savings plans and am looking to surrender and gain the cash. When I spoke to the woman at LV, she said it may be subject to tax deductions however I was of the belief this was a tax-free savings plan.
    If it was a friendly society plan (TESP) then these are tax free (but damned expensive by more than any tax compared to conventional investments).

    If it was an endowment policy then these have internal taxation that equates to basic rate but no further liability if held to maturity (or some other scenarios/points).        An earlier surrender can create a tax bill if you are a higher rate taxpayer or close to it (and brings you into the higher rate band.
    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.
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