Critical Illness payout - where would I include it?

Everywhere I have seen and based on what my insurer told me, a critical illness payout is not taxable. But should it still be included in my self assessment anywhere? The wording about 'payments from a personal insurance policy for sickness or disability benefits'. Should I include it or not? Thanks

Hi Nicola,
You do not need to declare a Critical illness payment in your Self Assessment Tax Return.  
Thank you. 

 

Hi there, Is the above the case for all critical illness payouts? That is, they don’t need to be added to a self assessment tax return and they don’t need to be disclosed to HMRC?

Hi ceeloucee16,
Please have a look at the guidance at IPTM6010 regarding critical illness policies (IPTM6010 - Sickness, disability, unemployment and long-term care insurance: introduction and overview).
Thank you.

Hi, (1) Is the Critical Illness insurance payout meant a form of reimbursement or lump sum payout? (2) If the Critical Illness insurance payout is a form of lump sum payout, then will such payout be taxed? (3) Is it the same tax regulation for the payouts of Critical Illness insurance policies which were issued by the insurers of the UK and overseas? Thank you in advance.

Hi UKHC,
The payment your receive from critical illness insurance is not reagrded as income or an annuity, so is not taxable.
You can find more information here:
IPTM6010 - Sickness, disability, unemployment and long-term care insurance: introduction and overview.
Thank you. 

 

I have had a critical illness payout recently and they have included interest in the payout. Do I need to declare the amount of interest for this critical up illness payout? Thank you.

Hi Claire,
Yes as it forms part of your personal savings allowance.
Thank you.