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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5147
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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On my 70th birthday (14/01/44) 2 endowment policies that I

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On my 70th birthday (14/01/44) 2 endowment policies that I took out in New Zealand in 1973 matured. I am still a New Zealand past port holder but resident in the UK for the past 39 years. The value of these policies are approx 60,000 NZ dollars. I am about to file my tax return. I have as income of 1. NHS Pension 2. State pension 3. £6000 private pensions

Hello and welcome to the site. Thank you for your question.

I presume your question is whether you have to declare these policies in your tax return 2014...

There is no tax liability as long as your policy remains a qualifying policy. This means it must have had a term of 10 years or more at the outset, run for at least 75% of its term and during the whole term premiums must not double or halve. you will get all the proceeds tax free, regardless of your tax rate.

Based on information provided you don't have to report the poceeds on your tax return.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.

In 2005 the policies were changed from whole of life to endowment. The bebefits were the same but the premium increased. Does this make a difference

Rob, thank you for your reply.

The change advised by you would not make any difference.

I hope this is helpful.
Customer: replied 3 years ago.

Sorry to chase detail as I plan not to include this in my tax return - no liability to you.

What is the difference between a qualifying and non-qualifying policy. Why does the Inland revenue say most foreign policies are nonqualifying?

Rob, thank you for your reply.

I am providing you a link to an article that explains the difference between qualifying and non-qualifying policies and also the tax implications.

Please advise what your total income from your various pensions is.

The proceeds are approx NZD 60,000 (around GBP29,600). What was your premium contribution over the term?

I am satisfied that you don't have to report this gain on your tax return 2014.

I hope this is helpful. and other Tax Specialists are ready to help you

I thank you for accepting my answer.

Your reward of a generous bonus is greatly appreciated.

Best wishes.

Customer: replied 3 years ago.

My total income is £62,000. I cannot work out my premiums accurately but it is approx 38000 I think. If it is important I will email AMP in New Zealand for a more exact figure. I hope they still have it as the policies are paid up.

Customer: replied 3 years ago.

38,000 New Zealand dollars that is !

Rob, thank you for your reply.

You should establish the gain made on your two policies in the event there is any enquiry from HMRC..
Is the total income inclusive of the gain on the policies?

Many thanks
Customer: replied 3 years ago.

no the £62000 is my NHS pension, state pension, and £6000 of private anuities

Robert, thank you for your reply.

Please gather information from your policy providers and revert to me.

I will then revisit my advice and come back to you and let you know if there is any change to it..

Many thanks
Customer: replied 3 years ago.

It will take some time but I will reply. Do I just use this thread and it will be directed to you?

Please use the same thread...

many thanks