Tax on life insurance endowment policy ?

viv57

Took out a life insurance endowment policy abroad whilst working there in early 90s.Continued paying into it for couple of years when returned to uk in mid 90s then stopped.All monies paid in were post tax.
As well as life insurance the policy has a cash value.If i terminate the policy will any uk tax be due on the cash value remitted?

dunstonh

If its pure life assurance then it has no value and not tax payable.

If it has an investment element then their may be tax payble if you are a higher rate taxpayer and policy is a whole of life plan.

GARDINER

See
http://www.hmrc.gov.uk/manuals/iptm/iptm3310.htm
and it may help

Cook_County

You should be aware that:

1. As a foreign policy there is no notional basic rate tax credit

2. You should however get top slicing relief and indeed only pay UK tax on the part earned while UK resident

GARDINER

This may interest you in connection with notional lower rate tax

http://www.hmrc.gov.uk/manuals/iptm/IPTM7555.htm

viv57

Thanks very much for the helpful replies and links

To summarize , am i right in concluding that i will be subject to tax on the
difference between the surrender value of the policy (less premiums paid whilst uk resident) and the cash value of policy when I moved back to uk ?

This will be at my marginal tax rate, although top slicing relief might be applicable depending on my income?