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Posted Fri, 05 May 2023 17:36:43 GMT by SWong Wong
Hi, am I need to fill in the Self assessment form if I withdraw 5% of the insurance premuim from the policy? If yes, which form and which part to input the details? Besides, if I also choose to have remittance basis, am I also need to declare that 5% in SA109? Thanks!
Posted Thu, 11 May 2023 15:28:38 GMT by HMRC Admin 5

You can withdraw up to 5% premium paid into the policy without a gain happening in that year.  

You would not need to report the withdrawal on a tax return in that year.  The 5% annual limit is not a tax-free amount.

All amounts paid from or withdrawn from a policy have to be added into the calculation made when your policy ends.  You can find more here-

HS321 Gains on foreign life insurance policies (2023)

Thank you.

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