From: "Kath S" 
Newsgroups: uk.finance
Subject: Re: Gifts to children - another thought
Date: Mon, 27 Oct 2003 08:39:11 -0000

Yes of course, thanks Doug, you've been very helpful.

Kath

"Doug Ramage"  wrote in message
news:bnbfq4$vqfo7$1@ID-34015.news.uni-berlin.de...
> I would suggest that you contact the Pru for their confirmation, in
writing,
> that the policy is a Qualifying one.
> --
> Doug Ramage
>
> "Kath S"  wrote in message
> news:bnb23l$8dm$1@yarrow.open.ac.uk...
> > The policy was originally, in 1970, a Donor policy "Endowment Assurance
by
> > Donor for benefit of Child" from the Pru. The Donor was my husbands
father
> > and the original term 50 years. The life assured, my husbands
> >
> > In 1983 father in law suggested we should be paying the premiums
ourselves
> > now and so a visit from the "man from the Pru" was arranged. On his
> > suggestion the policy was changed also so that it matures next month
which
> > meant a premium increase. We have been paying the premium since that
time
> > and all correspondence regarding the policy is directed to my husband
now.
> >
> > How do I know if it is a "qualifying"  life policy? And does the fact
that
> > it was originally a donor policy affect the position?
> >
> > Kath
> >
> > "Doug Ramage"  wrote in message
> > news:bn8gef$u94pi$1@ID-34015.news.uni-berlin.de...
> > > Impossible to be definitive without more data.
> > >
> > > However, if it is a maturing qualifying life policy (and he is the
> > original
> > > policyholder), then the proceeds should be tax free. No reporting to
the
> > IR
> > > is required.
> > > --
> > > Doug Ramage
> > >
> > > "Kath S"  wrote in message
> > > news:bn8fi1$4r1$1@yarrow.open.ac.uk...
> > > > I just thought of something else!
> > > >
> > > > Is the payout from the insurance policy subject to income tax? Its
in
> my
> > > > husbands name so does that mean he has to declare it and he'll have
to
> > > give
> > > > some (or lots) of it to the tax man?
> > > >
> > > > I really should be better informed about such things! Can anyone
> > recommend
> > > a
> > > > dummies guide to personal finance and taxation?!
> > > >
> > > > Kath
> > > >
> > > > "Kath S"  wrote in message
> > > > news:bn8220$s9q$1@yarrow.open.ac.uk...
> > > > > For many years we have paid a small amount into an endowment
policy
> > with
> > > > the
> > > > > idea that when it matures we would use the money to finance our
two
> > sons
> > > > > higher education. This policy matures next month.
> > > > >
> > > > > One son is already at University in his second year of a four year
> > > course.
> > > > > He has taken the full amount of student loan available each year
so
> > far.
> > > > >
> > > > > The original thought was to wait until he has finished and then
give
> > him
> > > > the
> > > > > money to pay off his student loan. By the time he finishes that
will
> > be
> > > > > about £12,000 I should think.
> > > > >
> > > > > But am I right in thinking it would be better for us to give him
> > smaller
> > > > > amounts each year for the next few years. He could invest it in
his
> > name
> > > > and
> > > > > use to pay his loan off when he finishes.
> > > > >
> > > > > What are the tax implications of such gifts for us and for him? My
> > > husband
> > > > > and I are both taxpayers, (husband pays higher rate) My son does
> earn
> > a
> > > > > little in holidays etc but not usually enough to pay tax.
> > > > >
> > > > > Kath
> > > > >
> > > > >
> > > >
> > > >
> > >
> > >
> >
> >
>
>