NRI Guide for United Kingdom

UK tax residents must report worldwide income on their Self Assessment return, including Indian rental income, FD interest, capital gains, and dividends. The India-UK DTAA caps withholding on interest at 15% and dividends at 15%, among the most favourable rates. Foreign Tax Credit Relief is available to offset Indian taxes (TDS) against UK tax on the same income. Under the new FIG regime (post April 2025), new arrivals to the UK get a 4-year exemption on foreign income and gains, after which worldwide taxation applies. Long-term UK residents who previously used the non-dom remittance basis will lose this benefit and must declare all Indian income. Capital gains on Indian property are also reportable, with relief for Indian capital gains tax paid.

Remittance from India to the UK follows standard NRI channels. NRE accounts are fully repatriable. NRO is capped at USD 1 million per year. UK banks generally require clear source documentation for large inbound transfers, particularly post-Brexit AML regulations. The key planning consideration post April 2025 is that remitting Indian income to the UK will trigger UK taxation (after the 4-year FIG exemption period). NRIs who previously kept Indian income in India to avoid UK tax will need to reassess whether remitting or keeping funds in India is more tax-efficient under the new rules.