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Posted Sat, 04 May 2024 12:09:23 GMT by moutax
I am an UK resident and I am getting some interest in my NRE and NRO account in India. 1. NRO account is taxable at 30 percent on interest income in india, now i am in 42 percent tax bracket or higher tax bracket in scotland. If the interest income from NRO account is less than 500 pound, is it taxable in UK? 2. NRE account is not taxabale from interest income prosective in india, so can i still apply for 15 percent tax relief in UK although I did not paid any tax india for first 10 years after opening of the account? 3. If i dont bring this money to UK now from NRE or NRO account, do i still need to pay tax on interest income?
Posted Mon, 13 May 2024 12:14:49 GMT by HMRC Admin 32 Response
Hi,

UK resident and domiciled individuals are subject to tax on their worldwide income and gains on an arising basis; this is regardless of the tax-exempt status in India.
Foreign Tax Credit relief is available in respect of tax deducted at source on NRO accounts and you can claim the 15 % for NRE accounts.

Thank you.

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