I am a permanent resident here in Japan but am originally from the UK. A grandparent – who still lives in the UK – recently received an insurance payout after another relative died, and has very kindly offered to give 20,000 GBP of it to me. I was not listed as a beneficiary of this policy and this will therefore be a gift.
I have done some general research and have also read other similar posts on this sub, and am aware of the annual limits on gift tax within Japan, as well as the taxation rate that this amount would incur if transferred to me in one lump sum (1.1m for the gift tax limit and 20% tax on an amount over 3m but under 4m JPY) as a standard. However, I am unsure how applicable this would be when the gifted money is from the UK and and when it is coming from insurance and not for property etc..
I could possibly receive the money into a UK bank account and then transfer over here using Wise, or I could simply bite the bullet and ask for a cheque or international wire transfer and then I guess submit a tax return stating this, but again am unsure as to which would be the most appropriate or simple option.
I do of course want to pay the lowest amount of tax possible, but also am not keen on the idea of ‘structuring’ and want to keep things above board and legal.
If anyone has any insight or experience into this or a similar situation I would very much appreciate if you could share or offer some advice.
Thanks!
by bobsterfest