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Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am a UK citizen who moved to the Netherlands in 2005. I have

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I am a UK citizen who moved to the Netherlands in 2005. I have a job in Holland and pay income tax in Euros in the Netherlands.
In the UK I have a Low Cost Endowment Mortgage Plan from 1996 that I am considering cashing in.
If I cash it in, what taxes do I have to pay on the income? Capital Gains, Income or something else? The house was sold in 2001 so I am not using it to pay of a mortgage, it was just an investment for the past 20 years.
I know if I declare tax as paid in the UK I do not have to pay it again in the EU.
Many thanks,
Hi Thanks for your question - I am Sam and I am one of the Uk tax experts here on Just Answer. Usually these can be cashed in tax free (regardless of your residency status) if they are deemed to e qualifying policies - so please advsie whether the following apply?The main conditions are, broadly the policy term must be ten years or morepremiums must be payable yearly or more frequentlythe level of premiums must be reasonably smooth - the rules are complex, but in essence the premiums paid in any 12 month period must not exceedtwice the premiums in any other 12 month periodone-eighth of the total premiums paid for a period of ten years or, in the case of an endowment or term policy, its specified term(for policies taken out on or after 1 April 1976) if the policy has a surrender value, the sum assured must be not less than 75 per cent of the premiums payableduring its term, if an endowment policywithin a specified premium payment term, if a whole life policyuntil age 75 in the case of a whole life policy with no specified premium term.the policy must be issued by a UK company or through a UK branch or permanent establishment of an overseas resident insurer.The 75 per cent of premiums rule is modified in certain casesan endowment policy where the insured life exceeds 55 - the 75 per cent figure is reduced by 2 percentage points for each year over 55a term policy with no surrender value that does not run beyond age 75 - the rule is disapplied. If its established that this is qualifying policy then we next have to look at the surrender of the policy (full term would deem it to be tax free) And No gain arises when a qualifying policy matures, pays out on death,is surrendered or sold if:• the policy has run for at least 10 years• there have not been any changes to it, and• all premiums have been paid when due. So please advise further Thanks Sam
Customer: replied 2 years ago.
Hi Sam, thanks for your advice, I know enough now.
HI I am glad you have all you need - Do let me know if I can assist further - If you could take the time out to rate me for the level of service provided, it would be very much appreciated (or click accept) Thanks you Sam
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