Hi everyone

We are looking into whether we should cash in our endowments or keep them on going whilst we are in Oz.

Has anybody else kept theirs going in the U.K. and what are the tax implications? :sign09:

Thanks
Rose

hi rose, we decided to cash ours in and pay off some of the mortgage with them, not sure what happens if you leave them running here, but i'm pretty sure that when they mature you will have to pay alot of tax on them when you get the money sent to you in oz.
laura

Hi
It is actually worse than that!
If you keep endowments running any growth is counted as income and you are taxed accordingly.
By that I mean taxed every year not just when they mature. It is one area that needs specialist advice.

Good luck

G

We cashed ours in as we asked to see what they would be worth at maturity and even at the top interest rate we made £20 after 15 years of paying into them so we decided it wasn't worth while carrying on paying into them.

Like Grayling said though get advice on it though if you are in any doubt about cashing them in.

Sasha :)

Hi there, Just read your post about Endowment. We are currently in correspondence with the Australian Tax Office in Adelaide about our endowment and we have had to supply all the details we have i.e when the endowment was taken out, how much we pay, when it matures etc., and they will decide if we will be exempt from paying tax. I did initally speak to the Tax Office on the telephone and they informed me that because it had been running longer that 10 years we would'nt have to pay any tax. We would like this in writing first, before we cash it it.

Another thing to consider if you haven't already, is whether you were mis-sold the endowment. On the advice of a IFA I know we have started looking for compensation on 3 policies that we have running.

We have used one of those 'no win, no fee' companies off the internet. Admittedly they get 25% plus VAT of any money we get but as the endowment is under performing anyway I condered it to be a fair swap.

If we pay into it for the next canteen years, it'll not be worth much more than we have put in.

I think it's worthy of consideration before cashing them in. You can always get your money out any time but the clock is ticking on compensation claims. You only get one shot at the claim so I think taking professional advice, even off a shark is worth it. :D

The girl I spoke to on the phone was stunned, when I told her one of my policies was set to miss the target by over 20K on it's own.

Gavin