Treatment of Capital Redemption Offshore Bond

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(Newbie)Newbie

28 May 2024

Hi there,

I am seeking clarity on the treatment of an offshore bond, based in the Isle of Man for when someone is both a temporary and permanent resident.

The bond is NOT a life insurance bond, and is instead a capital redemption bond, which does not appear to be covered in any ATO guidelines.

Specific questions include whether this is taxed in Australia as a temporary resident, what the taxation treatment would be as a permanent resident, and whether holding this for 10 years (including potential transfer to other parties) renders the bond tax free?

Many thanks for your help!

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