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Posted Mon, 08 May 2023 17:51:24 GMT by PNWUK
Hi, HMRC, I decide to terminate my life insurance policy and expect to receive the gurantee surrender value. Is it taxable? Thank you Peter
Posted Fri, 12 May 2023 12:36:03 GMT by HMRC Admin 19

It may be if you are a higher rate taxpayer. You can see information here:

Gains on UK life insurance policies (Self Assessment helpsheet HS320)

Thank you.
Posted Sat, 27 May 2023 22:15:15 GMT by Orlando Exile
What is the position on surrender a life policy taken out in 1979 while resident in US for 1st 5 years. US is to withhold 30% - research indicates this is treated as UK life policy with presumed 20% UK tax withheld alternatively an allowance for period in US - HS320 (2014) This will push beneficiary into 40% tax bracket
Posted Wed, 31 May 2023 15:15:03 GMT by HMRC Admin 25
Hi Orlando Exile,
Please refer to guidance for foreign policies here: 
If a gain arises
Thank you. 
Posted Mon, 19 Jun 2023 22:11:46 GMT by Lalitmc
Hi HMRC, Will there be a tax on my surrender amount if the full surrender value is less than the total premium amount paid, I have not had any partial surrenders in the past, however the full surrender value is around 55% of my total premiums paid. Kindly let me know.
Posted Thu, 22 Jun 2023 19:23:48 GMT by HMRC Admin 25
Hi Lalitmc,
Please check with your policy provider, who will be able to confirm if the gain from your policy is taxable.
If it is taxable, you will need to send the certificate to HMRC, so that your tax liability can be determined.  
If the taxable gain is over £10,000, you will need to complete a Self Assessment Tax return.
Thank you. 
Posted Mon, 21 Aug 2023 08:50:36 GMT by Orlando Exile
Surrendered Life Policy US Withhhold Tax Double Tax Relief guiding principle as I understand it is withholding tax applied to income can either be treated as a reduction of proceeds or FTR. In most cases the latter provides greater benefit. However, there is no box on the 2023 Foreign Income form to claim FTR nor any reference in SA106 or HS321
Posted Sat, 09 Sep 2023 11:11:59 GMT by Sonia
Hi, I am going to terminate a Hong Kong Life insurance policy and remit the surrender value to the UK. Is the amount taxable in the UK? Does the permanent residence and country of domicile matter confirmation of the surrender value is taxable or not taxable? In the meantime, I am renting a property and working in the UK for two years and holding a five-year Hong Kong BNO Visa. But I am still holding a residential property in Hong Kong. Should I deem to be a Hong Kong domiciled and UK resident and have a permanent residence in Hong Kong? Could you give me a kind advice, please? Regards.
Posted Mon, 18 Sep 2023 12:59:08 GMT by HMRC Admin 32
Hi Sonia,

Details of the gain from your foreign life insurance policy should be entered in box 43 of the Foreign Pages (SA106), which you will find under the sub-heading 'Other overseas income & gains'.

Foreign notes (2022-23)           

To ascertain your residency status, please refer to the following guidance:  

Tax on foreign income

Thank you.

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