The ATO has released guidance for taxpayers who held a life insurance policy with The National Mutual Life Association of Australasia Limited (NMLA) and it was transferred to AMP Life Limited (AMPL) on 1 January 2017 under a Federal Court approved transfer.

The ATO says taxpayers do not need to include any amount in my tax return as a result of the transfer as the transfer itself does not give rise to any assessable income or capital gain. If a taxpayer holds a policy for the eligible period, being over 10 years, the ATO says they may qualify for concessional tax treatment when the policy matures, is terminated, forfeited, or surrendered in full or in part.

[ATO website: guidance; LTN 145, 2/8/17]

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