Uk Critical Illness payment

I’ve had a UK life cover and critical illness policy since 2010. I’m in the process of making a critical illness claim that would be a tax free lump sum in the Uk.

Does anyone know if the illness payment is tax free in France?

I presume you’ve been declaring the policy on your tax return here?

Hi Tim,

I am wondering why you would declare the policy, is it for some allowance or other ? I have Private Health Insurance (PHI) currently, do i need to declare that in my next tax return ?

Service-public is usually a reliable source, but can’t find any mention of assurance maladie redoutée. This is the closest, which suggests might not be taxable. But is for daily compensation rather than lump sum.

A visit to your local tax office might be called for. It’s a quiet time of year.

(And I hope your critical illness is a temporary one and you recover well)

Thanks Jane. Yes, recoverable thankfully

You are supposed to declare all foreign bank accounts, pensions, life insurance policies, premium bonds, credit card accounts etc. I would guess PHI is different as you can’t actually gain anything financially.

Although thinking about it a little more, having PHI means you do negate some of the social charges that are collected on income, pension etc. Similar to the declaration of an S1 that seems to change the charges levied.

Nope I’ve not added the life cover to my tax return. My accountant has said it is only Life Insurance Policies with an investment element ie endowment type that you need to add- not too sure if he is correct…

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Rightly or wrongly I’ve stuck my life insurance policy on the list of ‘foreign’ accounts that I have, it doesn’t have any investment element so maybe I don’t need to.

Hello Andrew and Welcome to the Forum.

As Jane suggests - go along to your local Tax Office and speak face to face with someone there. Arm yourself with all possible paperwork and think-through all the questions you want to ask. (dictionary is handy, although someone there might speak English).

Getting advice from the horse’s mouth is generally best, when dealing with something as important as this.

good luck

Yes, no downside so better to be safe than sorry.

Thanks Stella for the advice. Think I will focus on getting the claim payment in then pop down. …dont want to tempt fate.

You won’t need to declare Worldwide Income for 2019 until May 2020, here in France. so you’ve plenty of time to find out which box to put it in on the “Declaration”…

good luck and good health (asap)

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