Low cost endowment maturity. Tax!

David_Aston

Hi Everyone
The ever wonderful Phoenix have told me that our Endowment policy is to mature on the 20th June. They kindly tell me it is assigned to Mortgage Agency services, (whoever the hell they are!) Naturally the proceeds, must be paid to them!!! After much increased blood pressure, my wife has produced a letter from our last mortgage provider stating the mortgage is paid off, so that should sort that problem. After all this preamble, my query is that they mention potential tax liability. Does anyone know if that may be liable on this sort of payout? The monkeys we chose all those years ago have not actually performed. Eleven grand shortfall on the mortgage, surely some of the paltry sum to come can't be due to go to the state?
Also, has anyone actually received a maturity payment from Phoenix, as opposed to a surrender value?

dunstonh

They kindly tell me it is assigned to Mortgage Agency services, (whoever the hell they are!)

That will be who you first took the mortgage with or who you later assigned the policy to if you remortgaged.

Naturally the proceeds, must be paid to them!!!

That is the whole point of assignment so naturally correct.

fter much increased blood pressure, my wife has produced a letter from our last mortgage provider stating the mortgage is paid off, so that should sort that problem.

Unlikely to sort the problem unless your last mortgage provider was Mortgage Agency Services (or they had bought that company).

After all this preamble, my query is that they mention potential tax liability. Does anyone know if that may be liable on this sort of payout?

There is none for a UK resident who has met qualifying rules (easiest one to meet is if the term has gone past 10 years). "Potential" is there because tax is potentially charged in some cases and its a standard letter and they dont know your circumstances. However, you normally only see it on surrender letters and not maturity letters.

Also, has anyone actually received a maturity payment from Phoenix, as opposed to a surrender value?

Are you surrendering the policy or maturing it? (may in part answer the bit above about tax).

turbobob

I see this sort of thing all the time. If you don't owe "Mortgage Agency Services" any money then they have no legal right to any policy proceeds (a lenders interest in an endowment policy is limited to the amount of money you actually owe them). You will need to contact MAS and get a letter of no further interest from them, in order for the policy proceeds to be paid to you. Presumably Phoenix will be able to give you contact details for MAS if you can't find them elsewhere. A quick google search suggests they are something to do with Britannia BS (or Verso).

David_Aston

Thanks for the info Turbobob.
We haven't actually borrowed money from Britannia or MAS.
Cheltenham and Gloucester being the final provider of our endowment backed mortgage. It is their closure letter I have sent off to Phoenix.

David_Aston

Thanks for your comprehensive input Dunstonh. It is maturing, having run it's twenty five year course.

dunstonh

Who was your first lender with the endowment policy. It is almost certainly them being referred to as the assignment.

David_Aston

Hello dunstonh
A company called National Home loans provided the money initially. We paid them off and moved the loan to C&G in 1993. A quick trawl through our ancient files has at least thrown up a letter from our solicitor of that time stating that this money was paid.

David_Aston

In fact dunstonh, a company called Life association of Scotland provided the money initially, and were also the endowment company. It was they who moved our loan to National Home loans. So, Life Association of Scotland has eventually become Phoenix. Oh dear, I am even boring myself, now!!!

dunstonh

Oh dear, I am even boring myself, now!!!

Welcome to the world of life assurance

You may need them to confirm they no longer hold an interest but I would go with what you have done at the moment. Technically, the Phoenix shouldnt release the funds but their low skilled support staff may not know the difference.

David_Aston

Thanks for your final posting dustonh. All I need just now, is a plethora of postings about the wonderfully prompt, and unexpectedly high maturity pay-outs coming from Phoenix at this time.
I won't hold my breath!