Japan Inheritance Guide for United Kingdom (英国) Nationals
This guide explains how Japanese inheritance law and tax apply to United Kingdom nationals living in or inheriting property from Japan. There are approximately approx. 19,000 United Kingdom nationals residing in Japan.
1. Applicable Law (準拠法)
Under Japan's Act on General Rules for Application of Laws (法の適用に関する通則法, Article 36), the inheritance of a person is governed by the national law of the decedent.
UK succession law varies by jurisdiction (England & Wales, Scotland, Northern Ireland). No forced heirship in England & Wales.
Renvoi (反致): May Apply
UK law refers movable property to the law of the domicile and immovable property to lex rei sitae. Renvoi may apply.
2. Tax Obligation Type (課税範囲)
Unlimited Taxpayer
Taxed on all worldwide assets.
Applies if: domiciled in Japan, OR foreign national with residence visa who has lived in Japan for 10+ years.
Limited Taxpayer
Taxed only on assets in Japan.
Applies if: not domiciled in Japan, OR foreign national who has lived in Japan for less than 10 years.
Note: While Japan has a tax treaty with United Kingdom, it does not cover inheritance tax. Relief must be claimed under domestic foreign tax credit provisions.
Tax Treaty Details: United Kingdom & Japan
Japan-UK Tax Treaty (日英租税条約, 2006)
Covers income tax and corporate tax. Does NOT cover inheritance tax. UK imposes IHT at 40% above the nil-rate band (£325,000). Double taxation relief relies on domestic provisions and UK's unilateral relief under IHTA 1984 §159.
Key Provisions:
- •Income/corporate tax credit provisions only
- •UK IHT unilateral relief under IHTA 1984 §159 for foreign tax paid
- •Japan domestic foreign tax credit (§20-2) for IHT paid to UK
United Kingdom Domestic Inheritance Tax
UK Inheritance Tax (IHT) applies at 40% on estates exceeding the nil-rate band of £325,000 (~¥62 million). Transfers between spouses are exempt. The residence nil-rate band adds £175,000 for a family home passed to direct descendants.
Note: Japanese inheritance tax applies to property in Japan regardless of United Kingdom's domestic tax regime. If both countries impose tax, relief is available through the bilateral tax treaty and/or Japan's domestic foreign tax credit (相続税法第20条の2).
3. United Kingdom Inheritance Law
- •No forced heirship in England & Wales (complete testamentary freedom)
- •Scotland has 'legal rights' (a form of forced heirship)
- •UK Inheritance Tax: 40% above £325,000 nil-rate band
- •Spouse exemption: unlimited transfers between spouses
Statutory Inheritance:
England & Wales: spouse receives first £322,000 + half remainder, children receive other half. Scotland: different rules with legal rights.
4. Required Documents
Grant of Probate / Letters of Administration
UK court order authorizing estate administration.
Apostille
UK is a Hague Convention member.
Certified Japanese Translation
English documents translated into Japanese.
5. Professional Fees
| Professional | Fee Range |
|---|---|
| Tax Accountant (税理士) | ¥500,000–¥1,500,000 |
| Lawyer (弁護士) | ¥500,000–¥1,500,000 |
| Judicial Scrivener (司法書士) | ¥80,000–¥200,000 |
| Translation | ¥20,000–¥60,000 |
6. Important Notes
- ⚠UK Inheritance Tax is 40% above £325,000
- ⚠Japan-UK tax treaty provides double tax relief
- ⚠English documents are easier for Japanese legal professionals to work with
Need Help with Inheritance in Japan?
Get connected with English-speaking tax professionals experienced in international inheritance cases.
Frequently Asked Questions
Can I be taxed by both Japan and the UK?
Yes, but the Japan-UK Tax Treaty provides foreign tax credits to prevent double taxation.
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This tool provides rough estimates only. It does not constitute tax advice or tax filing services. Actual tax obligations may differ significantly. Please consult a licensed tax professional (税理士) for accurate calculations.