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US tax on my UK-based endowment policy

US tax on my UK-based endowment policy

Old Dec 9th 2019, 1:33 pm
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Default US tax on my UK-based endowment policy

Hi Everyone,

My family and I are planning to move to the US in a few months, and I'd appreciate any advice about the tax implications for our endowment policy.

The policy is due to mature in about 4 years, and obviously there will be no UK tax on the payout. Am I correct that there will also be no tax payable in the US?

Many thanks indeed in advance for your help, it's greatly appreciated.

Warm regards
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Old Dec 9th 2019, 4:58 pm
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Default Re: US tax on my UK-based endowment policy

Is this thread helpful? Might be a bit dated.

https://britishexpats.com/forum/usa-...us-tax-770107/
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Old Dec 10th 2019, 7:00 am
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Default Re: US tax on my UK-based endowment policy

Many thanks, really appreciate it. Cheers
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Old Dec 17th 2019, 12:31 am
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Default Re: US tax on my UK-based endowment policy

I recently had my endowment mature. I had been declaring it on my FBAR. Based on best current advice I paid tax on the "gain", i.e. final value transferred to my bank account - 25yrs of payments. If I had known (or truly appreciated it) I would have cashed it out before coming here. I regret not doing that, I had been under the mistaken impression that it was not taxable.

It was an annoying amount of tax, but I put it down to the cost of moving from UK to US, just like the cost of selling a UK car and buying a US car.



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Old Dec 17th 2019, 6:19 am
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Default Re: US tax on my UK-based endowment policy

Yeah, makes sense. Many thanks
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