Tax question?

A

ASFKAP

Registered User
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Hi all, I lived abroad for a number of years and returned to Ireland about 2 years ago and am now working here and paying PAYE. When I lived in the UK I bought a house over there and took out an endowment policy to pay the mortgage. I sold that house beofre I moved back, paid off the mortgage but kept on the endowment policy as it still has about 8 years to go to maturity. I was hoping to use the proceed of it to pay off some of the mortgage that I took out when I bought a house on moving back here.
My question is, when the policy matures will I have to pay Irish tax on it when I bring the money over here? I have no idea exactly how much its worth now with all this endowment shortfalls but at the time it was to cover a £68K STG mortgage.
Thanks in advance
 
You should have no liability providing that the premiums are being paid out of taxed income. UK onshore policies are taxed annually within the fund, this tax deems that the income tax liability of the policyholder is paid.
 
So when the time comes I can just ask them to send me a cheque without having to mention it to the revenue or what would be the best way to do this?
Will I have to show records of how I paid it over 25 years?
What I've been doing since I moved back here is transferring a few hundred pounds a couple of times a year to an account I kept in the UK (they won't let me pay it in Euros) to meet the direct debit.
Thanks again for taking the time to answer.
 
I cannot see any reason for informing the revenue as this contract is the same as a pre-gross roll up contract in this country. Providing that the policy is with a uk onshore comany and you did not request the fund to be altered to have offshore status, I don't even think an onshore endowment would even facilitate this, the fund is being taxed within the company annually at Corporation Tax, which deems that the policy holders income tax liability is satisifed. There are other rules in the uk in relation to qualifying policies and if you break the qualifying rules you could deem the benefit to be taxed at marginal rate, if you have left your policy to maturity you have not broken any qualifying rules.

In saying all of this, if I were you I would keep bankstatement on both sides of the water to prove that the monies were transfered from taxed monies. Better to be safe than sorry with the revenue, you can see what they are doing now in relation to the Single Premium Investigation, the onus is on the tax payer to prove the source of the monies. You are supposed to inform the revenue in the event that you make a gain on items, even on your ppr you are supposed to tell the revenue when you sell it although no one really does, in this case the policy is maturing so no sale but you are (hopefully) making a gain, but as the income tax liability is satisifed there is no CGT liability so no need to inform under gains made IMO.
 
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