life insurance policy

Hi HMRC, I would like to enquire about the tax return reporting process for a payout from surrendering our Hong Kong life insurance policies. My parents have been paying yearly for life insurance policies for both me and my daughter since a long time ago. The insurance policies were taken with an insurance company in Hong Kong. My parents have surrendered the policies after the policies were matured. The insurance company has given me the payout in form of a foreign cheque (Hong Kong dollars) in my name. My parents are Hong Kong residents. I am a resident of UK. The insurance company in Hong Kong has confirmed that the payout from the policies have no tax payable to the Hong Kong government. Can I confirm the following: 1) Since the policies were paid for by my parents over the years. Would the payout be classified as a gift? 2) Are we liable for any tax in UK for the insurance payout?

Hi,
Please refer to guidance at:
HS321 Gains on foreign life insurance policies (2024)
Thank you.

Thank you for your reply. Can I also confirm if these policies can be classified as gifts from my parents? Since theae policies were paid for by my parents over the years. Regards, William

Hi William Wong,
If the policy has matured in your name, no.
Thank you.