Tax on cashed endowment policy?

Tax on cashed endowment policy?

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I have a client who says she cashed in an endowment policy and in the letter sent by the insurance company with her cheque, it was explained that they were obliged to deduct tax on the proceeds and enclosed a cert of tax deducted.

To be honest this is the first time I have come across this and before she brings me the letter, i thought i might ask this knowledegable community have they come across this before or have I been in clould cuckoo land for a bit and need to get out a bi more.
Thanks

Tim
Tim Gold

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By User deleted
05th Aug 2008 16:09

surprise
I can understand why it is a surprise, as so many endowments cashed in early don't make a profit, thus why you haven't seen it before.

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By User deleted
05th Aug 2008 14:00

Sooty and Sweep say...
Yes it is correct.
I hope you don't advise on tax issues though, but if you do, then don't go out more, stay in, get away from Cloud Cuckoo land and read up a bit more about tax. You may find it beneficial.
You may also want to look at "Top Slicing".

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