Tax advisor for UK expats

[Azrael]

Hi all

I wonder if anyone can recommend a tax advisor that has experience in dealing with UK expats please? Ideally they would:

1. Be able to speak English (though not a deal breaker if they can't)
2. Have experience dealing with inheritance / gift tax (from UK to Japan)

Thanks very much for any help in advance and apologies if this has already been posted elsewhere.

[Wales4rugbyWC23]

Hi all

I wonder if anyone can recommend a tax advisor that has experience in dealing with UK expats please? Ideally they would:

1. Be able to speak English (though not a deal breaker if they can't)
2. Have experience dealing with inheritance / gift tax (from UK to Japan)

Thanks very much for any help in advance and apologies if this has already been posted elsewhere.

My accountant does not speak English but she does deal with my reporting of UK rentals to the Japanese tax office. However, she will also be dealing with the inheritance that I will be getting from my deceased father once probate has been given in the UK.

If you are interested both my accountant and I are located in Fukuoka prefecture.

[Azrael]

Thanks very much for the suggestion. I may well contact you in due course if I can't find English advice but I have a few leads currently that I am looking in to. I will share with the group if they bear fruit.

[Tkydon]

Gift Taxes in Japan are pretty straight forward.

It depends on whether you have been in Japan for more than 5 years in the last 10 years, or not.

One thing to remember is that any Gift received in the 3 year period before the death of the donor will be reassessed for Inheritance Taxes.

Much of the complexity is about the valuation of non-financial assets received.

Gift Tax:

As an individual, Permanent Resident for Tax Purposes, you can receive Gifts up to the value of Y1.1M in any year completely Tax Free.

Ascertain the Taxable Value of all Gifts in the Tax Year.
Deduct the Basic Allowance of Y1.1M
Deduct any other Allowances (probably none, but there may be some.)

This yields the Net Taxable Gift Amount

This is then taxed at

Gift Tax Rates
Marginal Tax rate (％)
Under 1,999,000 ― 10%
2,000,000 ―2,999,000 ― 15%
3,000,000 ― 3,999,000 ― 20%
4,000,000 ― 5,999,000 ― 30%
6,000,000 ― 9,999,000 ― 40%
10,000,000 ― 14,999,000 ― 45%
15,000,000 ― 29,999,000 ― 50%
Over 30,000,000 ― 55%

Gift Tax Rates For Gifts From Direct Relatives (Parents, Grand Parents, etc.)
Marginal Tax rate (％)
Under 1,999,000 ― 10%
2,000,000 ―3,999,000 ― 15%
4,000,000 ― 5,999,000 ― 20%
6,000,000 ― 9,999,000 ― 30%
10,000,000 ― 14,999,000 ― 40%
15,000,000 ― 29,999,000 ― 45%
30,000,000 ― 44,999,000 ― 50%
Over 45,000,000 ― 55%


Inheritance Taxes are very complex, but as a summary,

There are some very large deductions for Inheritance in Japan.
For an Overseas Inheritance, the deductions are very favourable:

Again, much of the complexity is about the valuation of non-financial assets received.

If there are multiple Heirs in Japan, then the Inheritance Taxes on an Overseas Estate will be calculated only on the total amount of the Estate inherited by all Residents of Japan, (not including anything inherited by Heirs not in Japan), and include reassessment of any Gifts received from the deceased by the heirs in Japan in the last 3 years, minus funeral expenses and other liabilities.

Deduct the Basic Estate Allowance of Y30,000,000 + No. Of Heirs in Japan x Y6,000,000

(Y36M, Y42M, Y48M, etc..)

This is the Total Taxable Amount of the Inheritance.

Divide the Total Taxable Amount to each heir in proportion of their Share of the Total Inheritance. (50%, 25%, 25%... or other)

Apply the Progressive Tax Rate to each Heir's portion of the Total Taxable Amount:

Inheritance Tax Rates
Tax Rates
Marginal Tax rate (％)
Under 9,999,000 ― 10%
10,000,000 ―29,999,000 ― 15%
30,000,000 ― 49,999,000 ― 20%
50,000,000 ― 99,999,000 ― 30%
100,000,000 ― 199,999,000 ― 40%
200,000,000 ― 299,999,000 ― 45%
300,000,000 ― 599,999,000 ― 45%
Over 600,000,000 ― 55%

Then, sum the Total Tax to all Heirs in Japan, and then Re-Apportion the Total Amount of Inheritance Tax to the Heirs in proportion to their shares of the total Japan inheritance. (Obviously, if there is 1 Heir, then it's 100%) (50%, 25%, 25%, other...)

If the Heir is not directly related to the deceased; parent, child, grandchild, spouse, then there is a 20% Surcharge of the amount of pro-rated Inheritance Tax to a max of Pro-rated Inheritance Tax and Surcharge of 70% of the total Aggregate Tax amount.

There is a credit for any Gift Tax paid on gifts received within the last 3 years of the deceased's life and other credits for Spouse, Minor or Handicapped person,
and for Chain Succession, if inheritance taxes have been paid in Japan on the same assets in the previous 10 years (probably not, if you are inheriting overseas assets),
and Foreign Tax Credit for any Foreign Taxes paid on the (portion of the) estate (inherited in Japan).

For Inheritance Taxes, you should consult a qualified advisor.

[Azrael]

Brilliant! Thanks very much for your help Tkydon!