Endowment Policy Matures

Gorteen

Long story short...

My wife and I lived in UK and when we bought a flat in the late 80's we had to take out a endowment policy. We sold the flat in 2000 and decided to keep paying the endowment policy (£65 per month) for the remainder of the 25 year term.
It has now matured and is worth in the region of £42,000.

We would have paid £65 x 12 x 25 = £19,500. A profit of £22,500.

Do I need to contact Revenue to pay tax on this?

BrokenArrows

You are not subject to tax in the UK on this policy as tax is paid on the interest earned as the policy earns it.

Since there is a double taxation treaty between ireland and uk you shouldnt have to pay any tax here either.

You should however call revenue and confirm.

Gorteen

BrokenArrows wrote: »

You are not subject to tax in the UK on this policy as tax is paid on the interest earned as the policy earns it.

Since there is a double taxation treaty between ireland and uk you shouldnt have to pay any tax here either.

You should however call revenue and confirm.

Thanks.......... I was hoping this might be the case, but I'm not savvy enough with financial matters to know. I'll visit Revenue