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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Sam , our endowment policy was taken out in 1990 therefore

Customer Question

Hi Sam , our endowment policy was taken out in 1990 therefore it has just matured. As it is no longer tied in to our mortgage it was been sent directly to our bank account can you tell me if we need to pay tax on our return.
Submitted: 2 years ago.
Category: UK Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

I am another expert on this site and I am happy to help you.
Please let me know if you wish to proceed with me.

Many thanks
Expert:  taxadvisor.uk replied 2 years ago.
Chris, thank you for your patience.

A mortgage endowment policy is a qualifying policy and these types of policies do not normally give rise to a chargeable event gain.

No gain arises when a qualifying policy matures, pays out on death, is surrendered or sold if:

- the policy has run for at least 10 years

- there have not been any changes to it, and

- all premiums have been paid when due.

You will not need to pay any tax on this return and you don't report it on your tax return.

More information on this can be found on Pages 3,4 and 6 of helpsheet 320 here

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323767/hs320.pdf

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.



I asked you a question over a week ago and payed £33 for the privilege ,I am still waiting for an answer




Expert:  taxadvisor.uk replied 2 years ago.

Chris, I am another expert on this site and I answered your question on 1 Jun 2015..

Although you have paid for the question, the expert would only get paid if you accept the answer.

I am repeating the answer I gave on 1 Jun 2015 and is as follows: .......

Chris, thank you for your patience.

A mortgage endowment policy is a qualifying policy and these types of policies do not normally give rise to a chargeable event gain.

No gain arises when a qualifying policy matures, pays out on death, is surrendered or sold if:

- the policy has run for at least 10 years

- there have not been any changes to it, and

- all premiums have been paid when due.

You will not need to pay any tax on this return and you don't report it on your tax return.

More information on this can be found on Pages 3,4 and 6 of helpsheet 320 here

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323767/hs320.pdf

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.