UK Pension summary - National Insurance Credits?

[Wales4rugbyWC23]

It isn't sadly. Bit of a shock for a lot of people. You inherit the capital gains tax liability on the original purchase price, although I think you are allowed to deduct some of the inheritance tax paid from it if you sell within a couple of years.

Yes, I have heard this on the grapevine, too. It makes it very difficult with property inheritances (huge Japanese capital gains tax liabilities) in the UK given the huge increases in house prices over the last few decades.

I've looked into this a bit and basically for inherited real estate, you pay the CGT on anything over what was originally paid for it. In a lot of cases, this is what your parents paid for the house. Obviously if that was from before the housing boom of the 1980s (as in my case), that is a very large amount subject to Japanese CGT. This alone makes it a serious consideration to move back to the UK, cut financial ties with Japan (and what ever else is required), then sell the house.

Just as an example, if you inherited a house today originally purchase for 40,000 GBP, but now with a value of 750,000 GBP (and then sold it for 750,000), there would be zero CGT to pay in the UK.

Capital Gains Tax in Japan however would be around £132,487 (or approx 24,500,000 JPY).
This is based on a 710,000 GBP capital gain and a June 1st 1980 GBP/JPY exchange rate when originally purchased.

At least that's what I understand. Please let me know if I'm wrong!

Given the very favourable tax treatment of property when purchasing in Japan, where everything bar the kitchen sink is deductible including stamp duty and depreciation, it is not surprising the Japanese tax office try to clobber you when you sell the property.

[Beaglehound]

Can I just check if my ex-wife (Japanese national) is eligible to claim a UK pension, or (even better) able to contribute yearly payments from overseas to boost her pot?

She has a NI number, and made only 32months contributions, but lived in the UK for 6-7years.

If relevant we divorced in Japan, after leaving the UK.

She should be able to contribute having lived for that length of time in the UK. Be aware that, as in Japan, a minimum of 10 years of contributions is necessary to get any payout. She should be able to backpay some years if she wants to reach that point quicker.

[Seasider4374]

@Beaglehound, @ Adamu Thank you - I've passed the info on!

[beanhead]

@Beaglehound, @ Adamu Thank you - I've passed the info on!

To make those back payments, she will have to go through the process of sending off the form to HMRC and waiting for a long time, as has been covered in different threads here.
She should fill out and send off the form as soon as possible.