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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have a 25 year UK endowment policy, which matures in 2020.

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I have a 25 year UK endowment policy, which matures in 2020. I continue to pay the monthly payment into it. Given I no longer need it to pay off the existing property, I am considering cashing it in early. My calculations show that there is no material benefit to waiting for it to mature. As such, I just want to check that I would have no tax obligation if I cash in the policy now. I wonder if someone could help me with this question, it would be much appreciated.

I'm looking at this now and will post my answer in a bit.
Hi again.

As the policy had a minmum term of term of 10 years and you have paid the premiums for more than 10 years, you won't have to pay tax on the profit you make if you surrender it now. Take a look here (page 3) and here for confirmation.

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