NewInTX

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

penguinsix

Is this thread helpful? Might be a bit dated.

UK Mortgage Endowment Policy and US Tax

NewInTX

OldJuddian

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.

NewInTX

Yeah, makes sense. Many thanks