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Posted Tue, 12 Dec 2023 23:49:02 GMT by
Hi - as an Indian national, NON domiciled but resident in the UK, how does the Tax treatment in the UK vary for Indian income generated from Capital Gains, Dividends, Interest etc. based on the following scenarios: 1. I choose the Remittance basis of Taxation and do NOT transfer any income gain from India to the UK 2. I choose the Remittance basis of Taxation and TRANSFER some income gain from India to the UK 3. I choose the Arising basis of Taxation and do NOT transfer any income gain from India to the UK 4. I choose the Arising basis of Taxation and TRANSFER some income gain from India to the UK Requesting detailed guidance please. Regards.
Posted Tue, 19 Dec 2023 10:49:40 GMT by HMRC Admin 5 Response
Hi

With the remittance basis, you are only taxed on your UK income and UK capital gains and that world-wide income and capital gains brought into the UK.  
Any income or capital gains not remitted to the UK, is not taxed, but will be taxed if brought into the UK in a future tax year.  
You will need to complete SA109 along with the rest of your tax return.  In the remittance section, you declare the unremitted income and capital gains and provide a breakdown of then in the free hand text box.  
When claiming the remittance basis, you lose your personal allowance and annual exempt allowance for capital gains.  
If you have been resident in the UK long enough, you will also incur the remittance charge, which is either £30000 or £60000, depending on the lenght of time you have been residen in the UK.  
Take a look at section 9 of RDR 1 (Residence, domicile and the remittance basis: RDR1) for more information.

Thank you
 

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