First post and it has to be a question
We're relocationg to Adelaide in May, and have 3 endowment policies which will mature in 2011. Should I cash them in at a reduced value, or let them mature and pay tax on them in 2001?
Anyone know what tax I will pay, or any financial wizards out there want to sort me out?!?!?
Cheers in advance.
Last edited by Chappers; 17-03-2008 at 09:29 PM.
Reason: spelling mistake
hi cant answer your question but we are in the samesituation Ours are also due in 2011 and were planning on letting them run till then..We are going to expo next month so may be able to get some advice from the banking companies then?? hopefully anyway. will watch this thread to see if can get more info..thanks for asking the question..
hard to believe, mine just paid out after 10yrs, worked out what i had paid in and only ended up with £200. extra. ok its a good way of saving, probably better off in an isa, oh has one with stll five yrs to go, will probally cash in to save on the agro
only going by my experience with my policy maybe you could get some financial advice but watch out they could cost the money youve made
hope you get the answer you are looking for
As an ex financial advisor, but now in Aus, I also have an endowment maturing this year, and going by my last bonus statement, should make a tidy profit. having said that it has been running for about 35 years.
Policies when they mature, (pay out) have no liability to tax. They also have what are known as reversionary bonuses and final bonuses applied to them. The reversionary bonuses are allocated to the policy each year, dependant on the profits of the company, (many of which have been poor in recent years) and cannot be taken away, unless the policy is cashed in early. The final bonus is only payable at maturity, and again is dependant on the profits of the company.
My advice would be to apply to your Insurance company for a surrender value, and also the anticipated maturity value, so that you have full understanding of how you stand. Once you have these, if you decide to surrender, check out the options to sell your policy to a trader. (These are often listed in the financial pages of newspapers) who may be able to offer more money. The policies are then bought by investors, who hope to gain the rewards of holding on until maturity.
Finally, if you decide to keep them, please make sure your financial institution are advised an address to send correspondence to, as they will certainly be searching for you when the policy matures.
Hope this helps.
I am sure that if you decide to keep your policies going in the UK you will have to pay tax to the Oz goverment on any growth they make annually from when you get here,
Hi guys, thanks for the replies.
We stand to loose about £6.5K if we cash in now, even with the poor performance, I just need to know what percentage we will be taxed after we move and see if this is greater or lees than cashing in.
I'll let you know what we find out!
See you all soon.;)
This is something I have been giving some thought to as well. I have 2 endowment policies that mature soon, one in 2012 and one in 2013. I am not very "up" on financial investments and how they work , so, though I will lose money, I have decided to cash them in. I want to get together as much money as I can to take to Oz to give us, as Tyke says, that financial raft when I am there. We are going to Adelaide on a SIR 475 Provisional visa so we need all the financial support we can get as you are not entitled to much (if anything) on this visa.
With that in mind I looked on the internet for companies that buy endowment policies, as I understand they may give you more than the surrender value, and found the following information
I'm going to contact APMM and hopefully get a reasonable price
Last edited by Beth&Martin; 26-03-2008 at 02:24 PM.
Reason: BBC website address given wasn't complete. Missed "stm" of the end
We were offered about £2000 more from AAP than surrender value, the offer has gone up about £200 since November. Our policy doesn't mature for another 10 years so we will sell it now.
very awkward position. I believe that if youve had them running for ten years or more , with a life cover element to it , then it is tax free. Dont take this as gospel, im not a financial advisor , and ask this question to one....or direct to the ATO....................................and let me know if you get a definate answer. anything before the ten years, tax is payable on the growth. But as said before , source proper advice, its a tricky subject.