Endowment Policy

[John Brown]

I have an endowment policy maturing next month, It was for a house I owned 25 years ago which I sold some 15 years ago. I kept on paying the premiums although I was told it would not pay out anything like the amount predicted. ( I got the compensation due for mis-selling the product a few years ago )

Its going to pay out about £9000

How do I treat the money regarding French Taxation. It appears to be going to be paid tax free in the UK.

Thanks, John

[parsnips]

[quote user="John Brown"]I have an endowment policy maturing next month, It was for a house I owned 25 years ago which I sold some 15 years ago. I kept on paying the premiums although I was told it would not pay out anything like the amount predicted. ( I got the compensation due for mis-selling the product a few years ago )

Its going to pay out about £9000

How do I treat the money regarding French Taxation. It appears to be going to be paid tax free in the UK.

Thanks, John

[/quote]

Hi,

      Provided the policy includes an element of life cover (and I think all endowments do--look at the policy documents), and you have held it since before 26/09/1997-which you have, then only the pro-rata gain since that date is taxable at your marginal rate after an allowance of 9200€ (married) or 4600€ (single). you declare the policy on 2042 page 4 box 8TT, giving the reference and the start date of the policy , and mention the liable amount . Don't take off the allowance - the tax office should do that.

[Mikep]

You'll need to tell the Tax office about it, because no-one else will.

[parsnips]

[quote user="Mikep"]You'll need to tell the Tax office about it, because no-one else will.

[/quote]

Hi,

     Yes, I meant to add that to my post. It's a lot less trouble to just forget it--as there will probably be little or no liability to tax.

[John Brown]

Thanks Parsnips for your advice and Mikep for your comments

John