I've searched the subjects prior to posting , but the brain is a mush and I need a little help not to mention advice . We intend migrating in the summer'06 on CP visas. We have a modest endowment policy (valued at less than $A50k)that has been running for 19 years and matures Nov. next year.What are the tax implications if we let it run to maturity and we're living in OZ, or would we be exempt under the ATO "small investor" definition? Also,and more importantly, we may have to validate our visas before the "big move" .We would then return to the UK to sell our house(our sole residence),are the proceeds from the house sale subject to any taxation?

This message has been edited. Last edited by: ritaandtony,

Regarding your house in the UK as it's your principle place of residence it is totally free of CGT no matter when you move to Oz.

Strictly speaking it's the total of overseas investments that must be below $50,000 not each investment. So you must value the endowment when you become tax resident in Oz and the tax liability is on the gain to when you sell it.

But during this time I'd expect you to be moving a lot of money around and if you don't declare it the oz taxman won't know any different.

Just my opinion.

thanks for your reply Kiwipaul- thinking about it, we're "cashing in" everything e.g ISA's,savings,P/Bonds prior to arriving (and getting a TFN),as far I can see,the endowment will be our only "overseas investment" .So,I'm not gonna loose any sleep it, and I'll let it run to maturity - . Thanks again
Tony