Offshore savings

Lkc

Hello. We lived in the Middle East for many years and whilst there we paid into an fp international savings plan. We have not paid into it since being back the last 7 years. The plan is now matured and ready to cash in. Do we need to pay tax on this

wmb194

Lkc said:

Hello. We lived in the Middle East for many years and whilst there we paid into an fp international savings plan. We have not paid into it since being back the last 7 years. The plan is now matured and ready to cash in. Do we need to pay tax on this

What precisely did you invest in?

dunstonh

fp international savings plan.

That would be an investment.   Possibly a MIP, an endowment, or an investment bond (in an offshore bond).

Do we need to pay tax on this

Potentially, yes.

poseidon1

Despite the paucity of information,  I am assuming what you paid into was a Friends Provident international savings plan with minimal life assurance cover similar or identical to the product below - 

https://advisers.fpinternational.com/documents/xim16d.pdf

FP point out they do not give tax advice on their products, but will certainly be exchanging information with HMRC when they pay out benefits to you.

As to tax ,  there will mostly likely  be exposure to income tax on the 'gain'  between what you have paid and what you eventually receive. As to how this taxable 'income gain' is calculated , you should seek professional tax advice. 

However in the meantime take notice  ( below) of HMRC's tax treatment of offshore non qualifying life polices ( which this would appear to be).


https://www.gov.uk/government/publications/gains-on-foreign-life-insurance-policies-hs321-self-assessment-helpsheet/hs321-gains-on-foreign-life-insurance-policies-2022

There is a potential method to mitigate the tax chargeable on these offshore policies, but further information needed from the OP if they are so inclined.

Lkc

Yes it is a savings with minimal life insurance. I will look at the links you provided. Thank you