How do you declare a matured endowment policy. Do you declare the pay-out minus what you paid in?
Usually these endowments have a minimal element of life insurance cover included (they often pay out 101% of the fund on death during the life of the policy). If yours is one (check the conditions document) , it can be declared under the favourable conditions of french life insurance . Provided you have held it over 8 years there is a tax-free allowance of 4600€ (single person) or 9200€ (couple) to set against the taxable gain (which ,as you say is the difference between premium(s) and the amount paid out). It is important to convert the £ amounts of the premium(s) and the payout to € based on the £/€ values on the day of the transactions. CSG at 17.5% is payable on the whole amount of gain, and you have achoice of paying income tax at your average rate , or if you think that would be more than 7.5% at a set rate of 7.5%.
It would be advisable to consult your tax office taking all relevant documents-especially the proof of life cover.
If there is no life cover you simply declare as capital gain and declare for tax with your other income, either at your average rate + CSG at 17.5% , or at a set rate (PFU) of 30% which includes CSG. Again , best to discuss with the tax office.
Thanks very much for the clarification. Unfortunately our Tax Office is useless and very unhelpful.
It has run for 25 years and was a life insurance as such as well.
Do you enter the net gain on maturity in Box 2DH?
Hello Ian… and welcome to the Forum.
Hopefully, someone will chime in…
But, in any case… having a chat (face to face) with the folk at your local Tax Office…might be useful for you. It is their job to ensure that figures go in the correct spot… (and not to take as much as possible from the Tax Payer, despite what some might think… )
hi Ian I have the same situation as you had a few years ago. How to declare a matured uk endowment policy on the french tax form
How did you resolve the problem
Thanks for any help mark
Could you give me some advice on where to declare a matured UK endowment life insurance policy on the french tax form
Any help appreciated