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Posted Tue, 16 Apr 2024 11:36:55 GMT by Goodsummer123
I have two insurance policies starting 2012 and 2013 respectively in Hong Kong and finished my eight years contributions with total HKD88,512 (HKD922 per month) for each policy in Mar 2020 and Oct 2021. I just surrendered two insurance policies in March 2024 (I relocated to the UK in Dec 2021) the surrender values for the two policies were HKD83,711.68 and HKD73,676.82 (I got less of total contribution) and remitting the fund to the UK on 12th Apr 2024? 1. May I know if I need to report these incomes in my self assessment in 2023/2024 or 2024/2025 as the policies were surrendered in Mar 2024 but remitted to the UK on 12th Apr 2024. But the total HKD contribution for eight years were a loss? 2. Do I need to exchange my contribution from HKD to GBP in my eight years contribution for each month to calculate the gain/loss? Or the total contribution of HKD88,512 and deducting surrender value? Thank you.
Posted Tue, 23 Apr 2024 12:47:00 GMT by HMRC Admin 8
Yes.  The 'arising basis' would confirm that you would report the chargeable event gains in the tax return for the tax year in which the policies matured and not when the monies were remitted to the UK.  March 2023, falls in the  2023 to 2024 tax year.  
To declare in a self assessment tax return, will require that you convert from HKD to pounds sterling.
 You would convert the figures showing on the chargeable event certificate.
Thank you.
Posted Tue, 23 Apr 2024 15:41:27 GMT by Goodsummer123
Since my insurance company in overseas did not issue chargeable event certificate, may I convert the use the insurance policy and surrender letter to calculate the gain/loss (actually it was loss in local currency, so I assume no need to report)?
Posted Tue, 30 Apr 2024 09:35:45 GMT by HMRC Admin 8
There is nothing to report, where a loss is incurred on the insurance policy.
Thank you.

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