Gains on foreign life insurance policies

I redeemed a foreign insurance last year & have some query on input of the page "Other overseas income and gain". For my gains on foreign life insurance policies, I understand the gained amount can be reduced for 1. periods of non-residence & 2. the number of years since the insurance was made (i.e. from insurance commence to redeemed). So when I fill in the field "Gains on foreign life insurance policies", shall i fill in the reduced gained amount , calculating by reducing both 1. period of non-residence and 2. no. of years since the insurance was made ? Thank you

Hi d kwok,

Please refer to guidance at Gains on foreign life insurance policies (Self Assessment helpsheet HS321)

Thank you.

I have a foreign single premium life insurance policy which I purchased in 2010 when I was resident in the United States. I am currently resident in the UK for the current tax year but not domiciled here. If I withdraw funds from the policy by way of a loan will there be any UK tax liability if the funds are not remitted to the UK (in the current tax year)? If I withdraw funds by way of a part surrender of the policy will there any UK tax liability if the funds are not remitted to the UK (in the current tax year). Additionally, if there is any UK tax liability arising in respect of either scenario will the gain be able to be apportioned on a time basis? I have read the HS321 but these particular points don't appear to be covered nor in the Insurance Taxation Manual.

Hi,

As not domiciled, you can claim the remittance basis and the the income from the policy is not remitted in any way then you dont pay tax on it.

Further guidance is at:

Remittance basis 2024 (HS264)

Thank you.