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Posted Sat, 01 Jun 2024 19:54:53 GMT by Suresh
i did further browsing on the topic and found this. 1. only the gain has to be declared. i.e., matured money - premium paid = gain. 2. aslo it mentions about non - domicile , where to mention this in the self assessment. can a UK resident , working for a UK company, Indian national with parental roots in India, having first home in India, by default fall into non domicile status. where it has to be stated ? Some guidelines will be off great help from HMRC
Posted Tue, 04 Jun 2024 08:56:36 GMT by HMRC Admin 5
Hi 

Under the arising basis of tax, you would declare the full amount of chargeable gain.  
If you are using the remittance basis, then you declare the amount remitted to the UK for tax purposes and also the amount not remitted.

Thank you
Posted Wed, 05 Jun 2024 12:41:58 GMT by HMRC Admin 25
Hi Suresh,
It is the gain on the policy that is taxable and would be declared in the foreign section (SA106).
As a UK tax resident, you are taxed on your world-wide income, by delcaring it in a Self Assessment tax return.
If you were born outside of the UK, then you are non domiciled for UK tax purposes.
This does not need to be declared, unless you wish to apply the remission basis of tax.
This can only be done on a paper tax return (SA100) and is declared on SA109, which can be found here:
Self Assessment tax return forms.
Thank you. 

 
Posted Thu, 13 Jun 2024 19:42:12 GMT by Suresh
Hi Thanks for your reply. picking from the gov.uk website , https://www.gov.uk/tax-foreign-income/non-domiciled-residents As explained above, I have two options 1. Arising basis of tax, declare the full amount of chargeable gain. 2. Remittance basis, declare the amount remitted to the UK for tax purposes and also the amount not remitted. this is a one time foreign gain for tax year 2024-2025 I came to UK in Feb 2008 and became a permanent resident in Jan 2013 however still hold Indian Passport. My foreign chargeable gain (matured life insurance policy amount - premium paid) for the tax year 2024-25 is approx 16000 pounds based on a rough INR to Pound conversion. Eventhough I am fall under UK tax resident, Non Domicile, from the info and amount being > 2000 pounds, i pick the following from the gov.uk - foreign gain webpage Claiming the remittance basis means you only pay UK tax on the income or gains you bring to the UK, but you: > lose tax-free allowances for Income Tax and Capital Gains Tax (some ‘dual residents’ may keep them) pay an annual charge if you’ve been resident of the UK for a certain amount of time You pay an annual charge of either: £30,000 if you’ve been here for at least 7 of the previous 9 tax years £60,000 for at least 12 of the previous 14 tax year So question 1 - As I am paying UK tax from Feb 2008, is it I have to pay RBC fees of £60000 ? and it is not a good reason to file return on remittance basis and the remittance money will be less 15000 pounds. Am i right ? can HMRC re-confirm that I can't proceed on remittance basis? Question 2 - if yes for question 1, this leaves me to fill self assessment for foreign gain on arising basis, am i right? can HMRC confirm based on my info that this is the right way to declare in self assessment (Arising basis). The life insurance policy matured amount is exempted from income tax in India. I have checked this with a Chartered Account who will be helping me to file income tax in India as the matured amount is more than the personal tax free limit. Now I wanted to know what will be tax if i bring ~15000 pounds to UK via bank transfer. I am already a higher tax payer (40%) in Scotland , Is there a income tax calculator to a facility to check with foreign gain? Thanks and Regards Suresh

[Display name amended - Admin]
Posted Fri, 14 Jun 2024 15:42:47 GMT by HMRC Admin 5
Hi Suresh

1. as you meet the conditions for the length of time you have been in the UK as non domiciled, it is possible that the remittance basis is charged.
We cannot confirm if you can continue on this basis as your residence is for you to determine and the query also amounts to financial advise which we are not authorised to give.  
2. answered at point 1

Thanks
Posted Mon, 15 Jul 2024 11:23:41 GMT by Suresh
Thank you. Is this foreign section SA 106 declaration available within online self assessment or it has to be done separately? (physical document submission?) 
Posted Tue, 16 Jul 2024 14:49:04 GMT by HMRC Admin 17

Hi,
 
Yes.

You need to tailor your return at section 3 in order for the foreign pages to show .

Thank you .

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