gain on life insurance policy towards pension relief?

[siashjoe1]

Hello,

I have a question regarding a gain made on a foreign life insurance policy

I recently surrendered my policy and received the lump sum. The gain (adjusted for TAR) will go towards my taxable income for this year

Can I use this amount as part of my overall annual allowance for pension contributions?

Any information gratefully received

Thank you

[AGoodman]

I think you are confusing two different limits.

The annual allowance is fixed at £60,000 except for very high earners.

Separately, your contributions are also capped at your employment income for the year (or £3,600 if higher). An insurance gain will not be counted as employment income.

[siashjoe1]

Thank you Agoodman,

I understand about the limits I just wanted to use the gain money as part of my income so I could use more of the allowance.

But as I understand it foreign gains on life insurance policies are not considered as UK earnings?

Thanks

[AGoodman]

Correct