Moving from India?
Your UK tax checklist
A practical, tick-box guide for people who've moved to the UK from India, or who live here with income, savings or property in India. Updated for the 2025/26 and 2026/27 tax years.
Inside
- Am I UK tax resident?
- Your India inventory
- Should you claim the 4-year FIG regime?
- Avoiding tax twice
- Moving money & buying a UK home
- Documents to collect
- Key deadlines
- Behind on declaring? What to do
Prepared by Riya Simariya, Director, Accounting & Taxation, ProKeeper Limited
AAT Level 4 · HMRC-authorised agent · AML supervised by HMRC
Step 1
Am I UK tax resident?
The UK tax year runs 6 April – 5 April (India's runs 1 April – 31 March). Residence is decided each year by the Statutory Residence Test.
- I spent 183 days or more in the UK this tax year If yes, you're automatically UK resident.
- I started full-time work in the UK, or my only home is now in the UK You're very likely resident. Split-year treatment may apply from your arrival date.
- I spent fewer than 46 days in the UK and wasn't resident in the previous 3 years You're automatically non-resident for that year.
- I wrote down my exact arrival date and kept travel evidence Passport stamps, boarding passes. You'll need these.
Split-year treatment: if you arrive mid-year to start a job or set up home, your Indian income before arrival is usually outside UK tax. Income after arrival is in scope.
Step 2
Your India inventory
Tick everything you have. Once you're UK resident, each one usually needs a UK decision.
| Item | Usual UK position once resident |
|---|
| NRE / FCNR deposits | Tax-free in India, but interest is taxable in the UK |
| NRO account / FDs | Taxable in the UK. Credit for Indian TDS up to the treaty rate (15%). |
| Rent from Indian property | Taxable in the UK. Credit for Indian tax. |
| Indian shares (demat) | Dividends taxable. Gains within UK CGT. |
| Indian mutual funds | Often taxed as income, not CGT ("offshore funds" rules) |
| PPF | Interest credited while UK resident is generally taxable |
| EPF / EPS / NPS | Complex. Take advice before withdrawing. |
| Property you may sell | UK gain measured in pounds. Indian tax credited. |
| Joint accounts with parents | Your share of the income is yours to declare |
Step 3
Should you claim the 4-year FIG regime?
Since 6 April 2025 the old "non-dom" remittance basis has gone. New arrivals may instead claim the Foreign Income and Gains (FIG) regime, which takes foreign income and gains out of UK tax for up to their first 4 years of residence.
Were you non-UK resident for the 10 tax years before you arrived? (UK study years count as residence)No → FIG not available
Is this tax year within your first 4 years of UK residence?No → FIG not available
Is your foreign income or gain large, e.g. a property sale, big FD maturity or large dividends?Yes → worth modelling
Is it just modest bank interest?Usually NOT worth claiming
The cost of claiming: in any year you claim FIG you lose your personal allowance (£12,570) and your CGT annual exempt amount (£3,000). On a £45,000 salary that's roughly £3,900 of extra tax, so it only pays off when the foreign income or gain is large. It must be claimed on your tax return; it isn't automatic.
Step 4
Avoiding tax twice
- I know which Indian income has already been taxed in India (TDS, Indian tax return) Collect Form 16A / TDS certificates and your Form 26AS / AIS.
- I'll claim foreign tax credit relief on my UK return The credit is capped at the UK tax on the same income and at the treaty rate.
- I've asked HMRC for a certificate of residence and given my Indian bank Form 10F So NRO interest is taxed at 15% (treaty) instead of 30%+.
- I'll reclaim any excess Indian TDS in India HMRC won't refund Indian tax. File an Indian return (an Indian CA can help).
- I've converted amounts to pounds and matched them to the UK tax year Use the rate on each date, or HMRC average rates consistently.
Step 5
Moving money & buying a UK home
Moving the money
- Moving my own savings isn't itself taxable in the UK Tax is on interest and gains, not transfers.
- NRE funds: freely repatriable
- NRO funds: up to USD 1m per Indian financial year Usually needs Forms 15CA/15CB.
- Parents gifting? Check LRS limits and TCS TCS is creditable or refundable in India.
- I've compared exchange rates with a specialist provider
Stamp duty traps (England & NI)
- I still own a home in India Higher rates (+5%) may apply. No first-time buyer relief.
- I've been in the UK under 183 days in the last 12 months 2% non-resident surcharge may apply. Often reclaimable later.
- I've raised both with my solicitor before exchange
Source of funds: lenders and solicitors must check where your deposit came from. Overseas money gets more scrutiny. Have the evidence ready before you make an offer.
Step 6
Documents to collect
- Indian bank statements (all accounts, 12+ months)
- Interest certificates & Form 16A
- Form 26AS / Annual Information Statement
- EPF passbook (year-by-year) & PPF statements
- Demat & mutual fund statements
- Property purchase & sale deeds, Form 16B
- Indian tax returns (ITR) filed
- Gift letters & donor bank statements
- UK P60s / payslips, arrival-date evidence
- HMRC certificate of residence & Form 10F
Step 7
Key deadlines
| Date | What | Example for 2025/26 |
|---|
| 5 April | UK tax year ends | 5 April 2026 |
| 5 October | Register for Self Assessment (if new) | 5 October 2026 |
| 31 January | File online & pay the balance | 31 January 2027 |
| 31 July | Second payment on account (if due) | 31 July 2027 |
Step 8
Behind on declaring Indian income?
India shares bank and investment data on UK residents with HMRC every year under the Common Reporting Standard. If you haven't declared Indian income, coming forward before HMRC contacts you usually means lower penalties.
- Don't ignore an HMRC letter about overseas income
- Don't close or empty Indian accounts to "tidy up"
- Don't sign a certificate of tax position unless it's true
- Do get the numbers done properly. Often less is owed than people fear, once Indian tax credits and allowances are applied.
Free 20-minute overseas income review
Tell us your arrival date and what you hold in India. We'll tell you plainly what needs declaring, whether FIG is worth claiming and what it should cost to put right, with a fixed fee before any work starts.
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This checklist is general information for the 2025/26 and 2026/27 UK tax years and is not personal tax, legal or mortgage advice. UK residence, FIG eligibility and the treatment of Indian provident funds depend on individual facts. Indian tax, FEMA, LRS and repatriation rules should be confirmed with an Indian chartered accountant or your bank. ProKeeper Limited, company no. 15221857, registered in England & Wales. Registered office: 128 City Road, London EC1V 2NX.
