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Posted Tue, 28 Nov 2023 10:37:19 GMT by Karen
Hello, I have a part surrender of a life policy. The total surrender amount received is less than the total premium amount being paid, is it treated as "no gain". If yes, do I need to report this "no gain"? Thank you, Karen
Posted Wed, 29 Nov 2023 19:10:52 GMT by HMRC Admin 25
Hi Karen,
The result of the calculation when a chargeable event arises may not be a positive amount.
There’s no relief for a loss and you should not make any entries on your tax return.
However, if the result of a full surrender, death or maturity calculation is negative and you made gains on the policy in earlier years, the section that follows about ‘deficiency relief’ may be relevant.
A loss on one policy cannot be set off against a gain on another policy.
Thank you. 

Posted Fri, 08 Dec 2023 15:50:47 GMT by Karen
Hello, Thanks to confirm that a loss is not required to report (total premiums amount paid is larger than total surrender amount received for a part surrender. If there's an dividend received for the part surrender, do I need to report this amount? Can this dividend be set off against the loss? And, which Box on the tax return SA108 to report the dividend if needed? Thank you.
Posted Thu, 14 Dec 2023 12:24:09 GMT by HMRC Admin 25
Hi Karen, 
The dividend would be declared under foreign income and you cannot set the loss against this.
There is no requirement for the SA108.
Thank you. 


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