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RNPFN retirement savings plan
clavacairn
Posts: 3 Newbie
I took out an RNPFN retirement savings plan (endowment assurance) November 1994. When I started self employment I was advised that I didn't need to pay tax on my monthly contributions. Is this correct? I am concerned now that I should have been paying tax.
The plan came to maturity October 2023. I understand it was a qualifying product so I don't need to pay tax on the payout (this is explicitly stated in the original contract). if this is the case do I still need to declare it as income on my tax return?
The plan came to maturity October 2023. I understand it was a qualifying product so I don't need to pay tax on the payout (this is explicitly stated in the original contract). if this is the case do I still need to declare it as income on my tax return?
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Comments
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If it's a qualifying policy, income tax has deemed to be have been paid by the fund so there is no liability on the maturity proceeds. If it is found to be non-qualifying, there would be a possible liability only to higher rate tax if applicable.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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Thank you. If it is qualifying do I have to include the payout in my self assessment tax return?
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I took out an RNPFN retirement savings plan (endowment assurance) November 1994. When I started self employment I was advised that I didn't need to pay tax on my monthly contributions. Is this correct?Endowments do not have tax on contributions. Endowments have internal taxation on the gains.The plan came to maturity October 2023. I understand it was a qualifying product so I don't need to pay tax on the payout (this is explicitly stated in the original contract). if this is the case do I still need to declare it as income on my tax return?There is no tax on maturity if the plan was qualifying and it qualified (the timescale involved means it would have qualified). You don't need to declare it anywhere and no income tax is payable.
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.1 -
thank you very much, that's really clear0
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