Investment policies maturing - where to put the cash and tax issue

[Hayabubu]

My long-term saving policies that I set up 20 years ago will mature this year. The policies are based in Hong Kong. I will have around £60,000 that I want to move into my Monex investments - I’ll max out my NISA and then probably buy more ETFs.

I have a Shinsei account as my main account then a Yuucho Ginko account that I set up to move money over to Monex (due to name spelling issues I couldn’t directly link Shinsei with Monex )

I’m not sure which account I should have the money paid into. Do Yuucho Ginko even accept overseas bank transfers?

Also, does anyone know if I’ll have to pay tax on the amount? I saved up using my Japanese salary for 20 years so I’ve already paid income tax. I’m hoping the government won’t want another slice!

Any advice or insights would be appreciated

[captainspoke]

For something like maturing insurance policies (something structured that way), you'll probably owe tax on gains. (And tho maybe it would be shielded over the years, there may be some chance that tax was owed along the way.)

That you already paid income tax on invested money is irrelevant. The same could be said for most any investment--any gains on my already taxed income invested in stocks/real estate/bitcoin/etc. will still be taxed (barring things like nisa/ideco).

Nisa/Ideco are great deals, almost certainly better than offshore schemes (due to their high fees and eventual taxes).

[Tkydon]

Yuucho Ginko accepts Bank Transfers from overseas, but only accepts Foreign Currency Deposits in USD and EUR, and of course JPY.
https://www.jp-bank.japanpost.jp/en/djp ... index.html

It seems that Shinsei Bank only accepts Foreign Currency Deposits in USD, EUR, AUD and NZD.
https://www.sbishinseibank.co.jp/english/gaika/cam/

SMBC Trust Bank Prestia (formerly Citibank Japan) accepts Foreign Currency Deposits in 17 currencies including GBP
https://www.smbctb.co.jp/en/product/for ... vings.html
Applicable currencies
USD, AUD, NZD, GBP, CAD, CHF, EUR, SGD, HKD, CNY*, THB, ZAR, TRY, MXN, NOK, SEK, DKK

Sony Bank
https://moneykit.net/en/guide/fc/
Applicable currencies
USD, EUR, GBP, AUD, NZD, CAD, CHF, HKD, BRL, CNY*, ZAR, SEK

You can check with other Japanese Banks' Gaika Accounts...

You could have the money converted from GBP to JPY by the sending party's bank, and sent by Wire Transfer
You could have the money sent by Wire Transfer in GBP (if the Bank will accept GBP) and converted from GBP to JPY by the receiving bank
or
You could have them send the money to WISE, either in GBP or JPY, or have WISE convert the money from GBP to JPY...

There are many discussions on WISE...

Just be aware that if you create a WISE account registered to a Japanese Address, then there is no limit on te amount you can transfer, but tere is a limit on the balance you can leave in the WISE Account for longer than 30 days.

https://wise.com/help/articles/3GBSRou4 ... e-in-japan



You have to pay Capital Gains Tax on the Capital Gain.

You have to calculate the Tax Basis:

The total amount of money you paid in in Yen, so if the payment was a regular JPY amount, the sum the payments.

If the payment was a regular GBP amount or other currency, you have to work out each payment amount in JPY at the TTS Exchange Rate on that day, or the actual exchange rate if you have it.

There is a little flexibility on selection of the rates, but not much...
https://www.nta.go.jp/english/taxes/ind ... /12017.htm

If you need, you can get the exchange rates from here:
https://www.murc-kawasesouba.jp/fx/past_3month.php

Rates for whole years can be downloaded at the bottom of the page.

If you decide to keep the GBP in GBP, you then have to convert the amount in GBP that you receive to JPY at the TTM exchange rate on the day you receive it for calculation purpose.

If you actually convert the GBP to JPY on receipt, you can use the actual exchange rate and the actual JPY amount received.

You then have to declare the difference between the Tax Basis (The JPY amount of the sum of all contributions) and the final JPY amount.
You have to declare the Gain in your Kakutei Shinkoku (in March 2025 if you receive the money in 2024).
You then get the Capital Gains Tax Allowance of Y500,000 tax free, and pay Capital Gains Tax on the remaining Taxable Gain.
You will have to pay the National and Reconstruction Capital Gains Taxes of 15.315% on the Taxable Gain in April 2025.

Then, Residents' Taxes will also be payable on the Taxable Gain and included in your Residents' Tax Bills at 5%, payable from July 2025 to June 2026, for a total of 20.315% Capital Gains Taxes.

[Wales4rugbyWC23]

My long-term saving policies that I set up 20 years ago will mature this year. The policies are based in Hong Kong. I will have around £60,000 that I want to move into my Monex investments - I’ll max out my NISA and then probably buy more ETFs.

I have a Shinsei account as my main account then a Yuucho Ginko account that I set up to move money over to Monex (due to name spelling issues I couldn’t directly link Shinsei with Monex )

I’m not sure which account I should have the money paid into. Do Yuucho Ginko even accept overseas bank transfers?

Also, does anyone know if I’ll have to pay tax on the amount? I saved up using my Japanese salary for 20 years so I’ve already paid income tax. I’m hoping the government won’t want another slice!

Any advice or insights would be appreciated

It wasn't a Generalli policy was it?

[goodandbadjapan]

My long-term saving policies that I set up 20 years ago will mature this year. The policies are based in Hong Kong. I will have around £60,000 that I want to move into my Monex investments - I’ll max out my NISA and then probably buy more ETFs.

I have a Shinsei account as my main account then a Yuucho Ginko account that I set up to move money over to Monex (due to name spelling issues I couldn’t directly link Shinsei with Monex )

I’m not sure which account I should have the money paid into. Do Yuucho Ginko even accept overseas bank transfers?

Also, does anyone know if I’ll have to pay tax on the amount? I saved up using my Japanese salary for 20 years so I’ve already paid income tax. I’m hoping the government won’t want another slice!

Any advice or insights would be appreciated

It wasn't a Generalli policy was it?

I had one of those policies (and @Wales4rugbyWC23 - yes it was Generali and it was rubbish!) I cashed it in and declared the gains here in Japan even though I had the funds put into my UK bank account. You do have to declare gains and I think you can have the funds transferred into most bank accounts here, just like a normal bank transfer.

[Hayabubu]

My long-term saving policies that I set up 20 years ago will mature this year. The policies are based in Hong Kong. I will have around £60,000 that I want to move into my Monex investments - I’ll max out my NISA and then probably buy more ETFs.

I have a Shinsei account as my main account then a Yuucho Ginko account that I set up to move money over to Monex (due to name spelling issues I couldn’t directly link Shinsei with Monex )

I’m not sure which account I should have the money paid into. Do Yuucho Ginko even accept overseas bank transfers?

Also, does anyone know if I’ll have to pay tax on the amount? I saved up using my Japanese salary for 20 years so I’ve already paid income tax. I’m hoping the government won’t want another slice!

Any advice or insights would be appreciated

It wasn't a Generalli policy was it?

I had one of those policies (and @Wales4rugbyWC23 - yes it was Generali and it was rubbish!) I cashed it in and declared the gains here in Japan even though I had the funds put into my UK bank account. You do have to declare gains and I think you can have the funds transferred into most bank accounts here, just like a normal bank transfer.

It started out as a Skandia policy but the company was bought out several times so became Quilter then Utmost. A rubbish policy that I posted about a couple of years ago - I didn’t know any better at the time and took the advice of Magellan financial advisors in Tokyo - they also went out of business I believe.

[Hayabubu]

Thanks for the detailed advice from everyone.
I’m not confident with the tax calculations so I’ll see if I can get a financially competent friend to help me out!

[Wales4rugbyWC23]

I wish I had had any capital gains to claim- almost zero percent growth. I cashed it in after 10 years when I was due a bonus (it was originally a 15 year policy) The only saving grace was I was invested in Yen and I sent it back to the UK in sterling at the height of all the Brexit shenanigans and got a really good exchange rate, I bought a flat with it and now I don't have to put up with expat financial advisor rip-off merchants but nightmare tenants.

[goodandbadjapan]

I wish I had had any capital gains to claim- almost zero percent growth. I cashed it in after 10 years when I was due a bonus (it was originally a 15 year policy) The only saving grace was I was invested in Yen and I sent it back to the UK in sterling at the height of all the Brexit shenanigans and got a really good exchange rate, I bought a flat with it and now I don't have to put up with expat financial advisor rip-off merchants but nightmare tenants.

This is almost my story exactly. Cashed in after 10 years of 15 year policy with very modest gains. Bought a flat in UK when pound was low because of Brexit! My 'tenants' are my parents, though.

[Wales4rugbyWC23]

I wish I had had any capital gains to claim- almost zero percent growth. I cashed it in after 10 years when I was due a bonus (it was originally a 15 year policy) The only saving grace was I was invested in Yen and I sent it back to the UK in sterling at the height of all the Brexit shenanigans and got a really good exchange rate, I bought a flat with it and now I don't have to put up with expat financial advisor rip-off merchants but nightmare tenants.

This is almost my story exactly. Cashed in after 10 years of 15 year policy with very modest gains. Bought a flat in UK when pound was low because of Brexit! My 'tenants' are my parents, though.

Were you also Generalli?