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Posted Tue, 28 Mar 2023 12:58:19 GMT by
We have been told by our offshore bond provider that as the bond commenced prior to to the year 2000, they are not obliged to report any chargeable gains during the life of the policy and will only report any gains in the event of of the bond ending. If I were to make a withdrawal from the bond and likely raise a chargeable gain, how do I declare this for tax if I cannot get the information from the provider? or is the tax only payable and backdated in the event the bond ending when the provider will provide a notification of life insurance payment by overseas insurer certificate?
Posted Tue, 04 Apr 2023 11:02:39 GMT by HMRC Admin 32
Hi,

Offshore bonds are regarded as 'foreign policies of life insurance and foreign capital redemption policies' for UK tax purposes (Section 476 of the Income Tax (Trading & other Income) Act 2005).

Please refer to HS231 for full details of when and how to declare to HMRC any 'chargeable event gains' arising from offshore bonds.        

HS321 Gains on foreign life insurance policies (2019)

Thank you.

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