Foreign insurance policy

I have some foreign life insurance policies from Hong Kong. I need to pay premium annually and the insurer will pay me interest and dividend every year. My questions are: 1. Do i need to report those interest and dividend, 2. if yes, the calculation of gain should be the total of interest and dividend or after deduction of annual premium paid ? Thanks

Hi,

Please refer to guidance at:

Gains on foreign life insurance policies (Self Assessment helpsheet HS321)

Thank you.

Hi HMRC Administrator, I had an insurance policy in Hong Kong which was effective from late January 2016. I have recently surrendered the policy in late May this year and have a gain of CNY 25,000, after deducting the surrender value paid to my bank account in Hong Kong and the initial one-off premium payment made in 2016. The surrender value paid to me is kept in my bank account in Hong Kong. I understand that I will need to report in SA 106 for the 2023-2024 tax year and I have the following questions - (1) Is it correct for me to enter the amount gain in Box 45 of the form? (2) For Box 44 about the number of years, should I enter the number of years of holding the policy? I should be grateful for your advice.

Hi Muk LO

Boxes 43 to 45 on SA106 (2023) are for you to declare gains on foreign life insurance policies, life annuities and capital redemption policies and life annuity contracts.  
Box 43 is the gain from the policy, Box 44 is the number of years the polict was held and box 45 is the foreign tax paid.
Take a look at Foreign notes

Thank you

Hello! HMRC Administrator, I had a life insurance policy, with saving in nature, all in Hong Kong dollars in, Hong Kong Insurance Company started in Oct 2017. I paid in total around GBP7,500 as premium in 2017, 2018 and 2019 by instalment. I will receive around GBP1,200 as one-time bonus at 6 year anniversary recently and started to receive GBP100 monthly payment with some interest, lesser than GBP10, starting from Nov 2023 from the insurance company for next six years or 72 months. The balance of cash value of the policy will turn to around GBP100 at the end of policy. The total life of the policy is 12 years. My questions are: 1. Should I declare in self assessment what I have received for the tax year 2023/24 2. How to calculate the gain if I have in current tax year or at the end of the policy? 3.How to fill in Box 44 of SA106 if I have a gain from the policy when the insurer told me that they can not provide me the chargeable Event certificate?

Hi,

You can find guidance here:

Gains on foreign life insurance policies (Self Assessment helpsheet HS321)

Thank you.