Foreign Life Insurance Beneficiary

Hi HMRC, I would like to ask on behalf of my wife. My wife is UK tax resident and her dad who lives in Hong Kong and is a non-UK resident passed away recently. My wife is the sole beneficiary of the life insurance bought by her dad in Hong Kong. When she get the death benefit from the policy, does she need to declare in the self assessment and is she liable to any tax? Thank you.

Hi.

Yes, she will need to declare it. You can guidance here:

Acquired or second-hand policies

Thank you.

Hi HMRC, Thank you for your reply. I just want to clarify a bit upon further checking on the policy details. My wife's dad, a non-UK tax resident, is the policy owner of the life insurance who passed away recently. My wife, a UK tax resident, is one of the beneficiaries of the life insurance policy and get a payout upon her father's death. The policy is finished by then, and my wife has not acquired anything except the payout. Does she need to declare for the payout in the self assessment? Thank you.

Hi,
That is explained in the link previoulsy given. to clarify - 6. Life annuities
Thank you.