Transfer investments to Japan

[Deathstar_ITHelpdesk]

I'm in this (Japan) for the long run now it seems - and suddenly find myself with a ok job and young family.

I have about 25M Yen invested in the UK, in individual stocks mainly, via an online UK bank I have kept an account with (using a UK address).

Id like to get this over to Japan now - thinking maybe transferring to Interactive Brokers. I don't want to sell everything given the current markets.

Does anyone have any experience in doing this? And what the liabilities are?

Thanks

[Tkydon]

How long have you been in Japan? This will have a big effect on any potential tax liability.

Transferring funds, in itself, is not a taxable event, but you may be subject to taxes on any gains.

[Deathstar_ITHelpdesk]

I have lived in Japan about 8.5 years - and I bought all the shares around 6.5 years ago with money I still had in the UK.

[Deathstar_ITHelpdesk]

How long have you been in Japan? This will have a big effect on any potential tax liability.

Transferring funds, in itself, is not a taxable event, but you may be subject to taxes on any gains.

I have lived in Japan about 8.5 years - and I bought all the shares around 6.5 years ago with money I still had in the UK.

Given current markets - most of the shares are in the red or breaking even price wise (aside from a few up 50-100%). I have taken all dividends as automatic reinvestment.

[Tkydon]

You are a Permanent Resident for Tax Purposes (different than Visa status) as you have been in Japan for more than 5 years in the last 10 years, and therefore your Global Income is taxable, whether you remit the funds to Japan or not.

Your reinvested dividends are liable for Japanese Dividend Taxes on the Japanese Yen value of the Dividends at 20.315% (15% National, 0.315% Reconstruction and 5% Residents' Taxes). There is no Withholding Tax on UK Dividends earned in the UK by non-residents, so no Foreign Tax Credit.

You may be able to transfer the Stocks from your UK Bank to an Interactive Brokers Account. You would have to ask your UK Bank and Interactive Brokers if this is possible, and how you would go about doing it. You would need to open an Interactive Brokers Account to do it.

Taxes in Japan would be assessed on the Japanese Yen values when you bought and sold, and not on the foreign currency buy and sell prices, so the weakening of the Yen may have had a positive effect on your Yen denominated gains.

You could Tax Harvest your losses to offset your gains to reduce the Capital Gains Tax liability on the gains.

There may be some other items I may have forgotten. If anything comes to mind, I will update...

[captainspoke]

...
I bought all the shares around 6.5 years ago with money I still had in the UK.

Given current markets - most of the shares are in the red or breaking even price wise (aside from a few up 50-100%). I have taken all dividends as automatic reinvestment.

Keep in mind that when you calculate gains/losses from the perspective of being a tax resident here, you need to convert the numbers to yen on the relevant dates.

So if you bought XYZ (fund, or stock) on Jan 15th, 2015, you'll need to use the TTM rate (pounds to yen) to get your cost basis, and then similarly, use a recent TTM rate, date of sale, to calculate your proceeds. The resulting difference, as expressed in yen, will be your gain/loss--not what appears on your UK statement (in pounds) as gain/loss.

This is my go-to site for rates (recommended by my local NTA): http://www.murc-kawasesouba.jp/fx/past_3month.php Scroll to just below the initial calendars and use the drop-downs to choose dates. If you happen to be using a date that it says is unavailable (sometimes it's a holiday here, but is a normal biz day in another country), then step back day by day until it gives you a rate.