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An Australian citizen is UK resident, but domiciled in Australia. She has inherited a “long-term income stream annuity”, which started in 2002 and will last for 15 years
My client is an Australian citizen who is resident in the UK but domiciled in Australia. In December 2012 her father – an Australian who was both resident and domiciled in Australia – died.
My client inherited an annual annuity that is classified under the “Australian non-superannuation annuities” heading in the Australian tax return. This tax return shows the following amounts in Australian dollars ($) for the year ended 30 June 2013.
- Gross amount of annuity: $3 525.
- Deductible amount of undeducted purchase price (UPP): $2 333.
- Assessable amount: $1 192.
The annuity is a “long-term income stream annuity” starting in 2002 with a life of 15 years terminating in July 2017 and has no residual value at that date. It is not a life annuity. It is understood that in Australia the element represents...
