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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 8738
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I’d like to surrender a qualifying whole of life policy. I

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i’d like to surrender a qualifying whole of life policy. I understand that there is no tax payable upon death, but is there tax to pay on the surrender value?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hello, I am one of the expert on Just Answer and pleased to be able to help you with your question.

Here is a pithy summary from FT Adviser:

'Where a qualifying policy is allowed to mature, the proceeds are tax-free. However, if a qualifying policy is surrendered, varied or assigned less than ten years after the policy is taken out, any profit may be taxable depending on the level of tax you usually pay.'

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Customer: replied 8 months ago.
the Policy was taken out more than 10 years ago. Am I right in saying there is no tax to pay.
Customer: replied 8 months ago.
Are you still there?

Correct, surrender with impunity; no tax.

Thank you for your support.