We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Maturing Endowment- tax??
Options
taper
Posts: 29 Forumite
in Cutting tax
Hi
I took out a savings endowment policy in May 2000 for 25 years which matures in a few months. It was only £30 a month but will be a nice bonus when it comes through.
Ive received a letter today just confirming the upcoming maturity. However it does say that any gains are taxable.
Would this be income tax, tax on savings interest over PSA or capital gains tax? I wasn’t expecting a tax impact so am a little confused.
If it’s savings tax the gains would put me over the PSA for next tax year but the gains have been made over a 25 year period where allowances weren’t utilised.
Any help would be appreciated.
I took out a savings endowment policy in May 2000 for 25 years which matures in a few months. It was only £30 a month but will be a nice bonus when it comes through.
Ive received a letter today just confirming the upcoming maturity. However it does say that any gains are taxable.
Would this be income tax, tax on savings interest over PSA or capital gains tax? I wasn’t expecting a tax impact so am a little confused.
If it’s savings tax the gains would put me over the PSA for next tax year but the gains have been made over a 25 year period where allowances weren’t utilised.
Any help would be appreciated.
Thanks
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards