RetireJapan

Hi
I am not a UK national, but have a rental property in the UK which will generate about 1K STG per month when I pay off the mortgage later this year.
Just wondering how best to invest this income? Was thinking of using interactive brokers and investing in STG based indexes such as the Vanguard stock indexes such VWLR, VEUR and iShares bond index such as SAAA.

I guess it does not make sense to send this to Japan, convert to YEN and invest using SBI?

I am planning to retire in Japan. I just want to make sure I do not end up facing UK un-necessary taxes and such

concerned wrote: ↑Sat Feb 19, 2022 8:33 am Hi
I am not a UK national, but have a rental property in the UK which will generate about 1K STG per month when I pay off the mortgage later this year.
Just wondering how best to invest this income? Was thinking of using interactive brokers and investing in STG based indexes such as the Vanguard stock indexes such VWLR, VEUR and iShares bond index such as SAAA.

I guess it does not make sense to send this to Japan, convert to YEN and invest using SBI?

I am planning to retire in Japan. I just want to make sure I do not end up facing UK un-necessary taxes and such

Using passive income to invest very envious of your situation.

If I may ask is that 1000 pounds after letting agent fees, ground rent and possible management fees have been deducted? if it is then you will be under the UK income tax allowance of 12,000 pounds so you do not need to pay any tax in the UK. However, you do need to declare it. It is difficult to invest in the UK in funds without access to a home address, families are always helpful for that. I would also make sure that this income has been registered with the Japanese tax office, because they can really come after you if you had not declared it and you are bringing the money over to Japan regularly. If that has all been done then, Japan is your oyster for investments through NISA and possible real estate.

*If I may ask is that 1000 pounds after letting agent fees, ground rent and possible management fees have been deducted? *
Thanks! for your reply

Its minus the agent fees, ground rent of about 200 STG per year and service charges of about 2,600 to then be deducted from that... I guess its the issue with property while gross looks good, once also expenses are deducted its much less...

Yes I am under the 12K allowance..

Yes have declared this income in UK and Japan, and will for sure max out NISA and IDECO as a priority, not sure about investing in real estate here as its a depreciating asset, and will get more difficult to rent over time....

Mind you I was able to use IB to buy VWRL on the UK stock exchange a few years back, hopefully this is still the case,so may do a combination max out NISA/IDECO here in Japan and use my STG in UK to buy index funds there

In retrospect I would have been much better off if I had invested in stocks over the last 10 years instead of property, return on that property in the UK has been about 4% per year gross of a return....

concerned wrote: ↑Sun Feb 20, 2022 7:57 am return on that property in the UK has been about 4% per year gross of a return....

May I ask if the value of your property has increased? If yes, is that included in this calculation?

Yes the value of my property has increased and I have not included this in the calculation

Wales4rugbyWC19 wrote: ↑Sun Feb 20, 2022 2:53 am

concerned wrote: ↑Sat Feb 19, 2022 8:33 am Hi
I am not a UK national, but have a rental property in the UK which will generate about 1K STG per month when I pay off the mortgage later this year.
Just wondering how best to invest this income? Was thinking of using interactive brokers and investing in STG based indexes such as the Vanguard stock indexes such VWLR, VEUR and iShares bond index such as SAAA.

I guess it does not make sense to send this to Japan, convert to YEN and invest using SBI?

I am planning to retire in Japan. I just want to make sure I do not end up facing UK un-necessary taxes and such

Using passive income to invest very envious of your situation.

If I may ask is that 1000 pounds after letting agent fees, ground rent and possible management fees have been deducted? if it is then you will be under the UK income tax allowance of 12,000 pounds so you do not need to pay any tax in the UK. However, you do need to declare it. It is difficult to invest in the UK in funds without access to a home address, families are always helpful for that. I would also make sure that this income has been registered with the Japanese tax office, because they can really come after you if you had not declared it and you are bringing the money over to Japan regularly. If that has all been done then, Japan is your oyster for investments through NISA and possible real estate.

Do we need to actually tell them how much "even if we never bring a penny over to Japan", and the money is used for purposes in the UK? EG life insurance,UK National Insurance, Repairs, etc etc, and is there a limit?

Thanks in advance.

Bubblegun wrote: ↑Sun Feb 27, 2022 8:24 am

Wales4rugbyWC19 wrote: ↑Sun Feb 20, 2022 2:53 am

concerned wrote: ↑Sat Feb 19, 2022 8:33 am Hi
I am not a UK national, but have a rental property in the UK which will generate about 1K STG per month when I pay off the mortgage later this year.
Just wondering how best to invest this income? Was thinking of using interactive brokers and investing in STG based indexes such as the Vanguard stock indexes such VWLR, VEUR and iShares bond index such as SAAA.

I guess it does not make sense to send this to Japan, convert to YEN and invest using SBI?

I am planning to retire in Japan. I just want to make sure I do not end up facing UK un-necessary taxes and such

Using passive income to invest very envious of your situation.

If I may ask is that 1000 pounds after letting agent fees, ground rent and possible management fees have been deducted? if it is then you will be under the UK income tax allowance of 12,000 pounds so you do not need to pay any tax in the UK. However, you do need to declare it. It is difficult to invest in the UK in funds without access to a home address, families are always helpful for that. I would also make sure that this income has been registered with the Japanese tax office, because they can really come after you if you had not declared it and you are bringing the money over to Japan regularly. If that has all been done then, Japan is your oyster for investments through NISA and possible real estate.

Do we need to actually tell them how much "even if we never bring a penny over to Japan", and the money is used for purposes in the UK? EG life insurance,UK National Insurance, Repairs, etc etc, and is there a limit?

Thanks in advance.

I am a little unsure who 'them' are HMRC or the Japanese tax office?

Hello.
Thank you for sharing experiences.
I'm a UK citizen, resident in Japan, with property income from the UK.
As you have recommended in this Forum, I declare this income both in the UK and in Japan.
At a recent HMRC live webinar giving advice specifically about declaring property income, I asked about whether we need to pay tax twice on this income: i.e. in the UK and in Japan, as there appears to be no 'double taxation agreement' between the two countries.
The answer I received was that I should ask my local tax office in Japan for a form to fill in that, when submitted as part of my Japan tax return, might enable me to avoid paying tax twice on my UK property income.
As the tax deadline in Japan is coming up, I wonder if any of you know about this form?
(Thanking you in advance).
PS> This might or might not be news to some of you. If you do pay tax in the UK, I can recommend signing up to HMRC Email alerts and (if interested) join some of their live webinars. They're well presented - very practical. The webinars are recorded and made available from the HMRC website and as links in the Emails they send out.

Wales4rugbyWC19 wrote: ↑Mon Feb 28, 2022 12:54 am

Bubblegun wrote: ↑Sun Feb 27, 2022 8:24 am

Wales4rugbyWC19 wrote: ↑Sun Feb 20, 2022 2:53 am

Using passive income to invest very envious of your situation.

If I may ask is that 1000 pounds after letting agent fees, ground rent and possible management fees have been deducted? if it is then you will be under the UK income tax allowance of 12,000 pounds so you do not need to pay any tax in the UK. However, you do need to declare it. It is difficult to invest in the UK in funds without access to a home address, families are always helpful for that. I would also make sure that this income has been registered with the Japanese tax office, because they can really come after you if you had not declared it and you are bringing the money over to Japan regularly. If that has all been done then, Japan is your oyster for investments through NISA and possible real estate.

Do we need to actually tell them how much "even if we never bring a penny over to Japan", and the money is used for purposes in the UK? EG life insurance,UK National Insurance, Repairs, etc etc, and is there a limit?

Thanks in advance.

I am a little unsure who 'them' are HMRC or the Japanese tax office?

Sorry Should have been clearer...
"Them" being Japans tax office. I already declare everything to the UK.

Bubblegun wrote: ↑Mon Feb 28, 2022 2:42 am

Wales4rugbyWC19 wrote: ↑Mon Feb 28, 2022 12:54 am

Bubblegun wrote: ↑Sun Feb 27, 2022 8:24 am

Do we need to actually tell them how much "even if we never bring a penny over to Japan", and the money is used for purposes in the UK? EG life insurance,UK National Insurance, Repairs, etc etc, and is there a limit?

Thanks in advance.

I am a little unsure who 'them' are HMRC or the Japanese tax office?

Sorry Should have been clearer...
"Them" being Japans tax office. I already declare everything to the UK.

I will be honest I was of the same mindset with (not) telling the Japanese tax office but have just put my buy to lets through with my Japanese tax return and got a big stonking loss. Notable business expenses that you can go against your rental income are stamp duty and mortgage interest not available in the UK any longer.

There is a lot more cooperation between the different national tax authorities so it is best to keep things above board.