Foreign Endoment Policy

Hello, Is the gain in foreign (French) endowment policy that was connected with the French mortgage taxable in the UK? Total funds deposited into the policy were EUR 69,000, but now, at the end of the term, the policy is valued at EUR 92,000. So is the gain of EUR 23K taxable in the UK? Thanks Thanks

Hi,

If you are tax resident in the UK yes. Please see:

Gains on foreign life insurance policies (Self Assessment helpsheet HS321)

Thank you.

Can we offset the loan interest that we took out to fund this insurance policy?

Hi,
You cannot set interest accruing from a loan to reduce the gain from the insurance policy.  
Interest from a mortgage loan can only be set against rental income.
Thank you.