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Posted Sat, 07 May 2022 01:33:53 GMT by MK
Hi Sir/ Madam, I moved from HK to UK since end of July2021, I have bought an insurance (as a kind of saving) in 2020 when I was living in HK but end it in Feb2022, finally I can get some money back but which is less than what I had paid in these last 2 years (e.g. I had paid for the insurance about HKD 60000 but I only can get back HKD 10000 when I end it), it is surely a capital loss, may I know if I can report for capital tax loss? if yes, may I know how can I get the correct exchange rate for reporting the money in GBP input and output in this case? as I paid and gain it in USD in different time point. If it is confirmed it is a "loss" in my capital gain tax reporting in 2021-22, and I also will have income tax reporting, will this capital "loss" give benefit to reduce my overall personal tax?
Posted Fri, 13 May 2022 07:38:00 GMT by HMRC Admin 19

As this is an insurance policy a capital loss does not arise. You may be able to claim deficiency relief, you can see more here:

HS321 Gains on foreign life insurance policies (2020) 

HMRC provides monthly exchange rates:

HMRC exchange rates for 2022: monthly

Thank you

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