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Posted Mon, 17 Jul 2023 07:27:49 GMT by YL Edison
I will migrate to UK using BN(O) visa on 1 Sep 2023 and I have not been to UK before. I have a few funds purchased through insurance company in Hong Kong in which I will withdraw some money from them before arriving UK to support my life. I will also apply for split-year before 1 Sep 2023. May I be advised whether I understand the below correctly, please? (1) I suppose I will be considered as tax resident in 2023-2024 as I will be in UK for more than 183 days. (2) In normal cases, only the net gain of the funds will be counted as personal income, if taxed. Also, Time Apportioned Reduction applies. (3) If the money is withdrawn before 31 Aug 2023 (split year on 1 Sep 2023), is the sum of money still taxable? Thanks.
Posted Thu, 20 Jul 2023 16:06:51 GMT by HMRC Admin 10 Response
Hi
1 - Yes.
2 - Chargeable Event Gains (CEG) arise from the payout of a policy, minus the payment into the policy.
 This difference is taxable.
3 - If split year treatment applies and the policy pays out before your come to the UK, then it is not taxable in the UK.  
The money subsequently transferred to the UK would not be taxable, unless that money generate income or dividends, which would be taxable.
Thankyou.
 

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