Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Endowment policy

17 November 2015
Issue: 4527 / Categories: Forum & Feedback

The tax implications of the maturity proceeds of an endowment policy.

My client Mr Z bought a house many years ago with an endowment mortgage. He occupied the property as his main residence for four years and then sold it. During that time he repaid the mortgage capital. However based on advice from an independent financial adviser he continued to pay the endowment insurance premiums and the policy is soon to come to the end of its term.

I should be grateful if readers could advise me on the tax implications of the endowment payout.

The endowment policy company was informed at the time that the mortgage had been repaid so the payment on maturity would be made directly to Mr Z rather than to the lender.

If there is a tax liability what steps might Mr Z take to minimise this? The payout is expected to be in excess of the sum of payments into...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon