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Maturing Endowment- tax??

taper Posts: 29 Forumite

7 January at 11:22PM 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.

Thanks

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Maturing Endowment- tax??

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