Self Assessment Reporting of Insurance Policy Maturity Benefits

Dear HMRC, I began a savings plan 15 years ago with a Hong Kong-based insurance company. Over the term, I paid up all premiums. Upon the policy's maturity , I started to receive a maturity benefit as monthly installments for 120 months. Since each installment includes both premium and interest components, I am unable to clearly separate the principal from the earnings for reporting purposes. While reviewing the Policyholder Taxation Manual, I could not locate a specific example or formula applicable to my situation. In principle, the gain would likely be the amount paid out, minus the amount paid in. Since I know how total “premium sum” and “total maturity benefit sum”, is it okay to make a simple calculation like: benefit sum - premium sum (then divided by) total no. of installment = monthly gain (Note: The insurance company did not provide a certificate but an annual statement with installment details only). My concern is that I may inadvertently overpay taxes, given that I am still receiving these monthly payouts in years to come. Your advice would provide much-needed clarity and ease my concerns. Many thanks for helping.

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