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Where Taxpayers and Advisers Meet

Death in Service payments to overseas beneficiaries

Posts: 1
Joined: Wed May 01, 2019 4:44 pm

Death in Service payments to overseas beneficiaries

Postby DebiP » Wed May 01, 2019 4:54 pm

I have a situation where employees with company funded life assurance/DIS benefit have named their beneficiaries but these are not UK residents.

In the event (hopefully hypothetical) that there is a claim, the funds need to be paid into a UK bank account which is possible as we have set up a trust arrangement, and the funds can then be diverted to the appropriate recipient depending on whether or not a named beneficiary exists.

If paying to a UK resident, the sum assured is tax-free.
Will this tax-free status still apply if redistributing the funds to a non-UK resident?
Could there be a tax implication that we need to inform the beneficiary of?
Has anyone been through this situation before and could give me some advice/sources of information?
Or should we engage a tax expert on an ad-hoc basis depending on the country involved?

Many thanks in advance.

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