Long story short, my parents are looking to sign over their house to me in the UK.
It’s not a hugely expensive property (around 60-80,000 pounds so under any inheritance tax thresholds) and I hope they will still have long and healthy lives, but I am just wondering if I would need to declare it on my tax forms in the meantime? I’m on a PR here in Japan and a regular company employee.
If it’s going to involve me getting taxed, then it might just be best to hold off.
Any insight would be hugely appreciated!
2 comments
As you’re PR then you became an “unlimited tax payer” the day you obtained your first table 2 visa (spouse, LTR, PR). So you’re subject to tax on overseas gifts and overseas inheritance.
This maybe under inheritance tax thresholds, but it’s not under gift tax thresholds.
So you need to go to r/JapanFinance and look into the process of making this an early inheritance so that it’s not defined a gift.
Edit: it will then also be included in your overseas assets calculation for OAR. Meaning if you have an aggregated total of >¥50 million in ALL overseas assets then if you’ve been here for >5 years you need to report them annually following the OAR process.
Thanks, I’m married and settled here so it’s not really an option. Seems that there’s no benefit really to receive the house now (as opposed to as inheritance), so i guess I will just ask my parents to hold off.
Appreciate the information guys.