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Posted Fri, 13 Oct 2023 10:35:55 GMT by
Hi, I have seen a couple of related questions asked on the forum, but not have found a very satisfactory answer for my use case. I moved to UK couple of years back, and I am an Indian citizen and UK tax resident. I plan on redeeming some of the mutual funds that I hold in India. I bought them when I was living in India. I do not plan to bring this withdrawn money to UK, and would be in my Non Resident Bank account in India. Since I have a NRI status, my funds would be subjected to Tax Deducted at Source (TDS) when redeeming them. Is there any UK tax implications that I need to keep in mind that I would be liable for? (Given that the money I receive on redeeming would not be brought into UK and that I would be already be taxed at source)
Posted Tue, 17 Oct 2023 15:24:52 GMT by HMRC Admin 10 Response
Hi
As a UK resident, you are required to declare your worldwide income and capital gains.
You should therefore report any capital gain arising from the redemption of the Indian mutual funds in the Capital Gains pages (SA 108) of your Self Assessment tax return, and claim any Foreign Tax Credit Relief due in the Foreign pages (SA106) under the heading 'Capital gains – Foreign Tax Credit Relief and Special Withholding Tax'.                  
HS261 Foreign Tax Credit Relief: Capital Gains (2018)

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