Foreign life insurance policy - change of life insured

Hi, My insurance policy provide an option to change the name of the insured person while the current insured person is alive. If the insured is changed, will it be treated as a chargeable event in that tax year?

Hi,

It is possible you may have a chargeable event as it depends on who you transferred it to. You can see guidance here:

HS321 Gains on foreign life insurance policies (2022)

Thank you.

Hi dear, Would you mind show me which section I should refer to? The transfer will be to other child. Thanks, Cyrus

Hi,

You will need to check with the insurance company to ascertain if they see this as an end to your policy and early withdrawal.

Thank you.

Hi, I like the feature of the 5% rule on insurance policy so I am planning to apply one before coming to UK. One feature of the insurance policy which i am interested has a feature to split the original policy into other fews while there will be new owner & insured as wish. This feature enable me to split part of the original policy to my new born baby(ies) as making him/her as new insured & owner of the policy. Will this split trigger a chargeable event even no withdrawal has been made? Cheers, Cyrus

Hi,
As per the HS321, link previoulsy given, You may also have made a gain which is only taxable when your policy ends.
This is because in each insurance year you can withdraw up to 5% of the premium paid into your policy without a gain happening in that year.
Thank you.

Hi, Thank you for your reply. Its very helpful. Can I also enjoy the same 5% withdrawal benefit if the policy is owned by a trust that I set up before coming to UK? I will be the settlor and one of the beneficiaries of that trust. Cheers, Cyrus

Hi
Per the HS321 advice already given, all information is contained there to answer your query.
As a trust then the same benefits do not apply.
Thankyou.