endowment tax

[homer75]

Will I have to pay income tax on an endowment which is maturing next year ? It was originally to be used to pay off a mortgage but I cleared that off many years ago and kept it going as a means of saving. Can anyone advise me on this please ?

[dzug]

Not if it's run its full term. There is sometimes tax to pay if you cash in early, but not on maturity.

[Loosehead]

No, most endowments are "qualifying" that means when they where sold there was a sufficient element of life cover to make all the proceeds tax free. Don't hold your breath though, budget tomorrow, Gordon will be looking!

[homer75]

Thanks dzug thats goood news for me.

Loosehead, you got me worrying again ! lol

Thanx guys

[Ethel]

Don't worry.

Even if the rules are changed in the budget it won't apply to existing endowments.