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Posted Wed, 03 May 2023 15:13:22 GMT by Tax20
Does a UK tax resident who is the beneficiary of a foreign life insurance (on death of the non uk resident policy holder), pays tax on sum received upon death of policy holder? (foreign life insurance transferred sums due to beneficiaries and closed policy). Policy date 1980. and if so, how to calculate without certificate as foreign life insurance company determined not to help!! only giving documents to do with beneficiary as at the time of death of policy holder but nothing as regards to policy as regards to contributions to the policy. Thank you for your help
Posted Wed, 10 May 2023 12:04:36 GMT by HMRC Admin 25
Hi Tax20,
It not clear whether you are the beneficial owner of the foreign life insurance policy or not.  
Please have a look at HS321:
HS321 Gains on foreign life insurance policies (2023) Updated 6 April 2023
Thank you. 
Posted Thu, 11 May 2023 14:40:51 GMT by puzzled user
I have the same question and I did not find HS321 helpful. to clarify: - the deceased owner of the policy has always lived abroad, is not British and has never set a foot in the UK - one of the policy beneficiaries is a UK tax resident - The foreign insurance company is foreign, no presence in the UK, no expertise in UK tax either, will likely only provide the documents required in that country - foreign tax will be levied on the payment to the beneficiary, above an allowance - the life insurance policy is similar to an insurance bond The question is: where can I find information about how / whether to report the sum received from the insurance company and understand the tax treatment. thank you for your help
Posted Thu, 18 May 2023 12:07:53 GMT by HMRC Admin 25
Hi puzzled user,
Please have a look at the Insurance Policyholder Taxation Manual IPTM3700 onwards:
IPTM3700 - Foreign policies: differences in treatment 
Foreign policies in most cases are not qualifying, which means the gain is taxable (IPTM3710).
Most foreign policies cannot in most cases be treated as though basic rate tax has been paid on any gains. (IPTM3720).  
Where policies are denominated in a foreign currency, any gains should be worked out in that currency first, before being converted to pounds sterling.
The gain that the UK tax resident individual should be reported to HMRC in a Self Assessment Tax return, in the foreign section (SA106) in box 43, 44 and 46 of page F6.
Thank you. 

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