How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5115
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

I have a Flexible Mortgage Plan (Endowment Policy) to cover

This answer was rated:

I have a Flexible Mortgage Plan (Endowment Policy) to cover an interest payment only mortgage. According to the policy document the plan is a Qualifying Policy. We contracted it in 1999 so more than 10 years ago. I am considering surrending it before maturity date (2024) and cash in the plan to re-pay and refinance my mortgage.
I wanted to check if I am liable to any gain (capital or chargeable event) tax if I decide to cash in early. I thought that irrespective of hypothetic gain (to be assessed) because I would surrender later than the 10 years threshold I would be exempt to any gain. Could you please confirm if this is correct?

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Qualifying policies generally do not give rise to chargeable event gains as these policies generally have a minimum term of 10 years with fairly even premiums payable at regular intervals, such as weekly, monthly or annually.

You are correct in your understanding.

Confirmation of this can be found here

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 1 year ago.
Thanks for your response.I searched on the link you've provided and based on this, I rang back my policy provider who has confirmed that the Plan is a Qualifying Policy. In this case I assume that the matter is closed and that I can take my decision considering that there will be no tax implication. This was what I thought but wanted a check from a professional which you gave me so thanks for this.I don't think that I have any further question. That was I guess quick and easy for you.

Thank you for your reply.

If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer. and other Tax Specialists are ready to help you