Selling a flat in the UK

[goodandbadjapan]

Hi. I bought a flat in the UK some years ago. Paid cash so no mortgage. At the time the yen rate against the pound was very favourable so now, even if the flat hadn't increased in value, it would be worth a lot more than it was in yen terms. I am not thinking of selling any time soon but my question is this: If I sold the flat, I would have to report the Capital Gains to the UK Inland Revenue. That would be easy - sum received sterling minus sum paid in sterling (and expenses etc) . But I would also have to report to JP tax authorities. Can you just convert the same sterling gain to yen at time of sale and declare that or do you have to actually calculate the yen price at purchase and then the yen price at sale?

[Deep Blue]

You have to calculate the purchase price in yen and the sale
price in yen.

Maybe best to sell if when you don’t have jusho in Japan.

[captainspoke]

Purchase price converted at the GBP:¥ rate on the buy date; sale price converted the same way at the different rate for the sell date.

[Wales4rugbyWC23]

Don't sell it, the Japanese tax office will really go after you especially if you have been reporting it in your yearly tax return with depreciation. Although you probably will be able to subtract the capital gains tax you paid in the UK from anything owed in capital gains in Japan.

[goodandbadjapan]

Don't sell it, the Japanese tax office will really go after you especially if you have been reporting it in your yearly tax return with depreciation. Although you probably will be able to subtract the capital gains tax you paid in the UK from anything owed in capital gains in Japan.

I'm not planning selling it for many years (if at all). I bought it for my parents to live in and I don't charge them rent or anything so no need for any declarations to JP authorities so far. But with the way the yen is now it is worth an awful lot more than it was when I bought it!

Thanks @Deep Blue and @Captainspoke for the clarification.

[RetireJapan]

Don't sell it, the Japanese tax office will really go after you especially if you have been reporting it in your yearly tax return with depreciation. Although you probably will be able to subtract the capital gains tax you paid in the UK from anything owed in capital gains in Japan.

I'm not planning selling it for many years (if at all). I bought it for my parents to live in and I don't charge them rent or anything so no need for any declarations to JP authorities so far. But with the way the yen is now it is worth an awful lot more than it was when I bought it!

Thanks @Deep Blue and @Captainspoke for the clarification.

You might need to declare it as part of overseas assets worth more than 50m yen.

[goodandbadjapan]

Don't sell it, the Japanese tax office will really go after you especially if you have been reporting it in your yearly tax return with depreciation. Although you probably will be able to subtract the capital gains tax you paid in the UK from anything owed in capital gains in Japan.

I'm not planning selling it for many years (if at all). I bought it for my parents to live in and I don't charge them rent or anything so no need for any declarations to JP authorities so far. But with the way the yen is now it is worth an awful lot more than it was when I bought it!

Thanks @Deep Blue and @Captainspoke for the clarification.

You might need to declare it as part of overseas assets worth more than 50m yen.

It's still under that threshold but who knows what might happen if the yen keeps tumbling!