Inheriting a private pension from a deceased parent in the UK

[danny15]

Hello all,
I have a question, which is rather on the niche side, but was hoping someone might be able to throw some light, before I talk to a tax person.
So basically my father passed away in UK and although there was no estate or cash to inherit, he did have a private pension plan with Standard Life Investments, worth about £210,000. This is being split between myself and my brother (who lives in the UK). I have been living in Japan for more than 15 years. My brother has already cashed out his half of the plan, and Standard Life automatically taxed him at a high emergency tax rate. He can arrange for his tax to be calculated down accordingly based on his other income in the UK etc, by filling out some kind of HMRC forms etc.

However, for my half of the plan, I am not sure what to do. I have not yet contacted Standard Life about it, but would like to do it soon. But they are not going to be able to give tax advice, especially related to a UK national residing in Japan. Also, I dont have a UK bank account anymore, but I do have Shinsei and also Wise, which I suppose can accept transfers in GBP?

I am worried that when I cash-out my half of the pesnion plan, then Standard Life will automatically tax me at the emergency rate, even though I dont live in the UK. And if they do that, how will I be able to figure out the correct UK / Japan tax procedures etc?

Many thanks indeed in advance for any of your insights.

[RetireJapan]

Sorry to hear about your father.

I would ask the insurance company about your options as a non-UK tax resident. They might not be able to give you tax advice, but they should know how things work. Then you can make an informed decision at your leisure.

[RetireJapan]

By the way you would only need to declare and pay tax if you inherited more than 42m yen (30m standard allowance +6m for standard heirs, ie you and your brother).

Half of 210,000 pounds is just over 20m yen, so nothing to declare or file in Japan, unless the pension has some special tax treatment in Japan... anyone else?

[Beaglehound]

I agree with RJ on speaking to Standard Life, they will have come across such situations often and will be able to tell you their procedures in the case of non-UK tax residents.

On the tax treatment, again RJ matches my understanding on inheritance tax limits and reporting. If you were receiving that amount as cash you would be free and clear. Whether the pension aspect complicates things I don't know. I do think you will be deemed to have inherited half of the pension pot rather than the proceeds thereof, but I don't know how the J tax folk would see that. In the case of property inheritance, for example, they take into account capital gains on said property. Something similar may or may not apply to pension investments.

Hopefully Clear As Mud or Tkydon will come along as they are good at this kind of niche question.