UK pension living in Japan

[Tkydon]

Personal Pensions, whether paid by the Pension Administrator or paid from an Annuity are not Public Pensions, and so are not included in the calculation for the 'Public Pension Deduction'.

UK National Pension, US Social Security, Australian Super-Annuation, etc., are Public Pensions, and so are included in the calculation for the 'Public Pension Deduction'.

As shown in the table in the Metro Tax Guide I posted above, the 'Public Pension Deduction' depends on the ratio of the Public Pension(s) to all other income, which includes other pensions other than Public Pensions, and whether you are under or over 65.

[Bubblegun]

This has brought up a few questions in my mind.

I assume the taxable event will be "when the money is brought over to Japan?"
I assume it will be calculated on the "exchange rate" on the transfer day?

No, the taxable event is when you receive the pension and the exchange rate on that day.

It then depends how long you have been in Japan, and if less than 5 years in the last 10 years, whether you remit any funds to Japan in the same year.

Is it better to do one massive lump transfer or a monthly transfer? I would assume one massive transfer is easier for tax purposes if exchange rates have to be taken into account.

Is there any way to lower our tax liabilities? Please note. This is not tax avoidance but being tax efficient.

It doesn't matter. You have to calculate every 2 months' payment at its own exchange rate.

https://www.murc-kawasesouba.jp/fx/past_3month.php

Thanks for that. Complicated as ever as the UK pension is monthly and the Japanese is bi-monthly. I really need to have a degree in economic math at this rate. . Sadly not the average rate.

[Tkydon]

Thanks for that. Complicated as ever as the UK pension is monthly and the Japanese is bi-monthly. I really need to have a degree in economic math at this rate. . Sadly not the average rate.

Sorry, my bad. Monthly rate (corrected above).

Yeah, the devil is in the detail

[cru42]

Skype test call works OK.

Called Future Pension Service... on hold 20 mins... I can hear the staffer talking but he can't hear me.

I'm on speaker. iPhone.

Restart phone.
tes
Trying again.

[cru42]

Must've been a tech glitch.

Got thru on second attempt (18 mins wait) and no issues.

[KCLenny]

Just to hijack this thread a bit as same title,
I have a uk pension (just the minimum 10 years paid but like hell if I’m letting that go!), and planning to retire in Japan.
I’m also planning to apply for citizenship in Japan probably next year.
In the case where I get citizenship, (NOT PR), does anything happen to my UK pension? Do I lose it? Do I need to inform HMRC?

[Tkydon]

Just to hijack this thread a bit as same title,
I have a uk pension (just the minimum 10 years paid but like hell if I’m letting that go!), and planning to retire in Japan.
I’m also planning to apply for citizenship in Japan probably next year.
In the case where I get citizenship, (NOT PR), does anything happen to my UK pension? Do I lose it? Do I need to inform HMRC?

No Change.

Tax Free in the UK, Taxable in Japan after all Deductions including the Public Pension Deduction.

i.e. All Qualifying Pensions aggregated together qualify for the Public Pension Deduction, depending on the total amount of all qualifying Pensions vs all other income.