Have a question about an endowment a relative set up back in 1996 with regards to taxation.
Originally set up in 1996 with regular payments.
Payments stopped a few years back.
Have the total paid in and the current cash in value which is about 40% more than what was paid in. Was going to cash it in 2 years ago but the value had dropped a fair bit (had dropped from 38% increase in 2008 to 25% in 2009 and finally recovered).
I have no idea what the monthly payments used to be but I don't think it was a lot looking at the amounts.
The money is needed to pay for some renovations to some property they are going to rent out when done and clear some debts from work that has already been done.
Is the tax valued on the total gain at the time of cash in or over the 15 years of the policy?
Also is there any benefit to cashing it into an ISA for now until the work needs to be paid for?
How does it all get declared? They will be doing their own tax return as they will be having income from the rented property.
Cheers
Used to sell life assurance in a building society a few years ago. The law then was that provided the endowment policy ran for 10 years or more then there was no capital gains.