Tax

[weecalf]

When an endowment policy matures shortfall and all .is it taxable

[dzug2]

Not normally

[factor-fiction]

In my experience no tax is payable on an endowment policy when it matures. However if you surrender early there can sometimes be tax to pay.

[R1Geezer]

no because nearly all endowments are "qualifying" that means when they were sold they satisfied revenue rules to make the proceeds tax free.

[weecalf]

Thanks .Its got a year to run but as it has fallen in worth quite often it is at its highest for some time I was thinking for the sake of a few hundred pounds I could lose a lot more by letting it run.

[twix123]

If you cash it in early you may be charged an Early Exit Fee and would also lose out on any terminal bonuses.

[weecalf]

No terminal bonus I was told so if I pay for another 15 months I might only get my money back .Tax free yes Im told.I was told most polcies pay a terminal bonus could have made a mistake .Its Sun life of Canada So will think about i.

[ubasses]

There are 2 types of endowments, with profits which pay a terminal bonus and those which are in unit trust type investments - no terminal bonus. If it was with profits you would have received annual statements showing how much bonus you had been paid each year. On both all tax should have been paid within the fund.