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Posted Thu, 06 Oct 2022 23:18:52 GMT by 510
Hi I had set up an insurance policy in Hong Kong before I became a UK tax resident in Jan 2022. I'd been paying £500 annual premium from 2002 to 2022, and the policy will pay out the cash value for 4 years every May from 2020-2023 and then mature in May 2023. Is it correct that I should report the surplus upon the maturity of the policy? i.e., Cost = £500 * 21 = £10500 Payout received in May 2020 = £3000 Payout received in May 2021 = £3000 Payout received in May 2022 = £3000 (not yet report in 2022-2023 tax return as gain is uncertain; I have not been receiving any notification of gains apart from the annual statements) Payout received in May 2023 = £3300 (to report surplus in 2023-2024 tax return), with surplus = £3000+£3000+£3000+£3300 - £10500 = £1800 And should I be reporting the surplus as overseas capital gain or overseas income? Thanks and regards
Posted Thu, 13 Oct 2022 11:35:35 GMT by HMRC Admin 20
Hi 510,

For detailed guidance on when and how to report taxable gains on foreign life insurance policies, please refer to helpsheet HS321.     

HS321 Gains on foreign life insurance policies (2020)

Thank you.

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