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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15944
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My ex husband and I took out a joint endowment policy in

Resolved Question:

My ex husband and I took out a joint endowment policy in 1996. This was assigned to me by him in 2013 after our divorce. If I surrendered in 2015, will I be taxed on this?
As it had run past the ten years I thought not but does the assignment affect it?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 1 year ago.

Is the policy one that was tied to your mortgage whereby you paid monthly premiums? How long were premiums paid for?

Customer: replied 1 year ago.
It was taken out initially with an interest only mortgage, then we changed the mortgage to a repayment however kept the endowment running as an investment. Yes monthly premiums were made
Customer: replied 1 year ago.
Premiums were paid from 1996 until the surrender in 2015 ( I took over the full payment of premiums after it was assigned to me)
Expert:  TonyTax replied 1 year ago.

Thanks.

The assignment makes absolutely no difference. As you have paid the premiums for as long as you have, there will be no tax to pay if you surrender the policy or have already done so. See page 3 here.

I hope this heslp but let me know if you have any further questions.

Customer: replied 1 year ago.
Thank you, ***** ***** what I initially thought but page 5 on the guide is what is confusing me when it mentions
What gives rise to a gain and on the second point down it mentions
(including as part of arrangements on divorce or separation)
Expert:  TonyTax replied 1 year ago.

Your message that you had surrendered the policy in 2015 did not post before I completed and posted my answer.

Unless you received a chargeable event certificate from the life company when you surrendered the policy, there will be no taxable gain. Gains on qualifying policies which is what yours was are not normally taxable even on divorce. Gains on non-qualifying policies are. The notes on page 5 refer to them.

TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you, ***** ***** did not receive a chargeable event certificate from the life company, only the surrender schedule.