Foreign life insurance income on self-assessment tax

Brilliant_Hurry

Hi, I moved to the UK in the year 2023. This year in February 2025 I cashed in a foreign life insurance policy. I believe I have to check if there is a chargeable gain event that I need to report to HMRC via self assessment.

So I have googled and what I understand are:

1. Gains on foreign life insurance policies are chargeable event gains taxed as income;

2. The policyholder was non-UK resident for part of the policy period HMRC requires time-apportionment so only the UK-residence fraction of any worldwide gain is taxed;

3. Convert that taxable amount to GBP using an HMRC-appropriate exchange rate (HMRC publishes monthly rates suitable for tax use)

4. The formula I should use for compute is:

"Total gain" = ("Surrender value" - "Total premiums") x ((1 - ("Non-UK days"/"Total policy period"))x100)

If the "Total gain" is a positive value, then I have to put the value in SA106 "Over overseas income and gain", item 43 "Gains from foreign life insurance policies, capital redemption policies and life annuity contracts".

Would someone help to take a look and let me know if I have missed anything please? Thank you.