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UK endowment policy matures

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Newbie

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Hi - I had UK endowment policy that I took out in early 1990's, recently mature after its full 25 year term. Although I no longer have the mortgage that I initially took the policy out for, I believe It is classed as a 'qualifying policy' in the UK and as I held it until full maturity it is not subject to any tax in the UK.

 

I am now an Australian Tax Resident and would like to transfer the money, approx GBP 57,400 to Australia. Do I have to declare this on my tax return and would the transfer be subject to AU taxation, given the money was a UK tax free payment

Many thanks

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Hi @Ponderer

 

Thanks for your post.

 

This is a question that has been asked a few times in our Community. We recommend that you check out the following threads:

 

As you can see, there is no definitive answer for this one as it will depend on your circumstances.

 

Thanks, ChrisR

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Best answer

Community Support

Replies 1

Hi @Ponderer

 

Thanks for your post.

 

This is a question that has been asked a few times in our Community. We recommend that you check out the following threads:

 

As you can see, there is no definitive answer for this one as it will depend on your circumstances.

 

Thanks, ChrisR

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Newbie

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Thanks ChrisR,

I could only see 1-2 similar questions, but couldnt understand where in the tax return the value of the monies should be included. I'm guessing its pointing towards section 20 "'Foreign source income and foreign assets'.

 

Do I include it as an answer in Q20, although it was not 'earnt as foreign income' but as a taxfree maturity from an overseas insurance policy.

 

Appreciate your answer

 

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ATO Certified

Community Support

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Hi @Ponderer

 

Thanks for your reply.

 

As it is sourced from overseas you would declare it as foreign income at item 20. Of course, that assumes that it is declarable. You may want to request an early engagement discussion to find out whether you have to declare it.

 

If it is declarable, you may find out that only some of it is. Have a look at the early engagement for advice page on our website for more information about how you can request a discussion.

 

Hope this helps.

 

Thanks, ChrisR

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Newbie

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Thanks ChrisR for your reply.

 

Sounds a bit of an "open to debate" answer, and I appreciate you are unable to provide a definitive answer. Is there anyone or a particular department at the ATO that I can address my early engagement query to help me understand what portion or whether at all it might be declarable? Just dont want to fall fowl of the law

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ATO Certified

Community Support

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Hi @Ponderer

 

Thanks for your reply.

 

You don't need to direct your early engagement request to a particular area. All you have to do is complete and submit the request (advice or call back) that suits you and we will direct it to the appropriate subject matter expert.

 

The small business and individuals page provides the links to the advice request and call back request forms.

 

Hope this helps.

 

Thanks, ChrisR