I have just sold my house, in preparation for moving to Oz (hopefully). I have kept the endowments going though. Can I keep them going while in OZ ? Will I get taxed on them when they mature ?

I did the same thing, I turned the endowment into fully paid up so I didn't have to contribue any more funds and left it in the UK.

Yes you will be taxed on the capital gain of the endowment from it's value when you arrive in Australia to the point that you cash it in.

So long as you hold it for 12 months after you arrive in Australia you will only be taxed on 50% of the capital gain, which if you are on the highest tax rate in Australia is effectively 24% (max tax rate is 48% but you get 50% allowance for assets held for 12 months so 24% ).

P.S. I'm no expert just what I've read.

Marty,

You should also watch Australia's Foreign Investment Fund Rules.

The FIF Rules tax you on the annual growth in funds like endowment policies, personal pension plans, PEPs/ISAs, etc if you retain them when you move to Australia, even if you don't encash them => not good news.

I suggest you might obtain the tax factsheet on Investments Held Outside Australia here:
http://www.collettandco.com/factsheet.cfm
and then feel able to contact me if you want some further information.

Best regards.

quote:

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Originally posted by Marty:
I have just sold my house, in preparation for moving to Oz (hopefully). I have kept the endowments going though. Can I keep them going while in OZ ? Will I get taxed on them when they mature ?

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Alan Collett
alan-at-gomatilda-dot-com
Registered Migration Agent Number 0102534
and a Fellow of the Institute of Chartered Accountants in England and Wales
http://www.gomatilda.com and
http://www.collettandco.co.uk
Offices in Southampton, England; Perth, Australia; and Melbourne, Australia