short tax return
 

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[Closed] short tax return

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.. yeah yeah I alway leave this too late... and obv the tax office is closed... so a quickie, I received a payout from a endowment policy within the tax year it applies to, do I include this some-how?
Not sure I do as it's not income in the sense of payment for work done, but don't want any hassle for getting this wrong.


 
Posted : 25/10/2015 2:26 pm
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edit.

Could be capital gain, income tax or income tax free.

Need more details on how long you've had it and what the original term was. Also did you start the endowment policy or buy someone else's.
When you cash in the policy you are normally given a statement with a note on the tax implications.


 
Posted : 25/10/2015 2:51 pm
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My mortgage endowment (mortgage paid off already) so 26 years old and matured, got a "certificate of deduction of income tax" it says income tax has or will be paid by provider


 
Posted : 25/10/2015 3:30 pm
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Standard endowment then usually no.


 
Posted : 25/10/2015 5:50 pm
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As it's matured and not cashed in early it would be tax free and no need to enter on your tax return. Again thus should have been given to you by the provider

http://www.thisismoney.co.uk/money/experts/article-3160638/Will-pay-tax-endowment-policy-maturing-soon.html


 
Posted : 25/10/2015 6:20 pm
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Cheers, was assuming so, but thinking the worst, needed some reassurance


 
Posted : 25/10/2015 9:32 pm
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OP its taxable if you are a higher rate taxpayer. As you have a short form return I'm guessing you are not.


 
Posted : 25/10/2015 10:28 pm
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OP its taxable if you are a higher rate taxpayer. As you have a short form return I'm guessing you are not.

Incorrect. It is generally not taxable, craigxxl's advice above is correct as it should be as he advises on this stuff for a living, if my recollection is correct.


 
Posted : 25/10/2015 10:38 pm
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@mefty TOTALLY correct sadly. I have the letters from the tax man and the bill to prove it.


 
Posted : 25/10/2015 10:40 pm
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You must have had an unusual situation, the vast majority of endowments are not taxable - see [url= https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323767/hs320.pdf ]here[/url]. As I said, if my recollection is correct, craigxxl is tax qualified - as am I but I don't practice and haven't done for some time so would happily defer to him.


 
Posted : 25/10/2015 11:07 pm
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My understanding is they are not taxable if they are used to offset a mortgage or if they aren't used is that way (ie mortgage already paid off) you are a basic rate taxpayer in the year they mature. The nature of the treatment is a bit strange as if mine had matured when I was living abroad I'd have had nothing extra to pay but as I was back in the year it matured I did. The long form tax return (required by all higher rate taxpayers) has a specific question/section for endowment policies which suggests to me the HMRC think a good number should be taxable.


 
Posted : 26/10/2015 10:28 am
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your not helping, though as guessed I'm definitely not in the high rate tax bracket.. and neither is the 35minute queue on the tax help line, which I've already been cut off from once @ 30mins + (bloody mobile reception).
Currently been listening to the hold music for the whole of my lunch break.. they best answer soon!


 
Posted : 26/10/2015 1:43 pm
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...finally got through, yep no need to mention it, just the final interest payment (£1..)


 
Posted : 26/10/2015 2:04 pm

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