This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

tax liability on foreign endowment

robinscott
Posts:4
Joined:Sat Aug 19, 2017 7:42 pm
tax liability on foreign endowment

Postby robinscott » Sat Aug 19, 2017 8:31 pm

Hi all, way back in the seventies I emigrated to South Africa where I invested in an Endowment policy with what was then the Prudential an
is now called Liberty. The policy is due to mature later this year and I am concerned about the amount of tax HMRC will demand.They have not been very informative over the phone and tell me to contact them when I receive any funds. HMRC have told me this will be classed as a Chargeable Event Gain. This is not a huge amount of money,I think the value of the policy is around £30000, but added to my salary I assume it would attract taxation of 40%? Is it possible I could reduce the tax on this figure by giving an amount to family or charity. Any advice on this matter would be greatly appreciated.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: tax liability on foreign endowment

Postby darthblingbling » Sun Aug 20, 2017 7:56 pm

Are you still in South Africa? Have you been non resident all these years?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: tax liability on foreign endowment

Postby darthblingbling » Sun Aug 20, 2017 7:58 pm

Actually ignore my question, I wrongly thought it was an overseas policy.

robinscott
Posts:4
Joined:Sat Aug 19, 2017 7:42 pm

Re: tax liability on foreign endowment

Postby robinscott » Sun Aug 20, 2017 8:34 pm

no sorry should have said I have been back in the U.K for nearly thirty years.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: tax liability on foreign endowment

Postby maths » Sun Aug 20, 2017 9:07 pm

Normally there is no tax to pay on a conventional endowment policy.

Chargeable event gains apply to single premium non-qualifying policies.

robinscott
Posts:4
Joined:Sat Aug 19, 2017 7:42 pm

Re: tax liability on foreign endowment

Postby robinscott » Wed Aug 23, 2017 2:28 pm

Thanks to both for replies ,still a bit in the dark though.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: tax liability on foreign endowment

Postby maths » Wed Aug 23, 2017 2:50 pm

Why?

I suggest that as a conventional endowment there should be no UK tax on its maturity.

robinscott
Posts:4
Joined:Sat Aug 19, 2017 7:42 pm

Re: tax liability on foreign endowment

Postby robinscott » Thu Aug 24, 2017 10:58 pm

Thanks maths that was my thoughts too but HMRC tell me even if I went back to South Africa for a holiday of a lifetime and spent the proceeds from the endowment,I would still be liable to pay tax on it on my return to U.K. ??? Makes no sense to me.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: tax liability on foreign endowment

Postby maths » Fri Aug 25, 2017 1:21 pm

Forget talking to HMRC; the person you speak to will not be a technician.

Call the insurance company; they will know.


Return to “Income Tax”