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Posted Thu, 26 Oct 2023 16:08:17 GMT by
Hi I am UK tax resident. I have an Indian INR NRO account which was setup when I was working as an ExPat in India. I kept the account as there were some outstanding INR refunds and future EPF payments to be made to me after I left the country. Some of these are still outstanding. The account is accruing some small amounts of quarterly interest and incurring a TAX at approximately 32%. Over the last year it has accrued 478 INR (£4.70) and paid tax of 153 INR (£1.52) I have read that the UK India DTAA says that the interest can be taxed at a maximum of 15%. Is this correct ? When I fill out the foreign income, interest, from oversea sources through my self assessment how much tax should I put in "C foreign tax taken off or paid"; do I put the full amount, 15% or nothing ? Please advise. Thanks.
Posted Tue, 31 Oct 2023 12:31:46 GMT by HMRC Admin 10 Response
Hi
Column C should show the amount of tax that was deducted.  
Self assessment can work out how much foreign tax credit can be claimed.
Posted Thu, 02 Nov 2023 05:20:28 GMT by
Thank you. That’s good to know. For the avoidance of doubt can you confirm this is not specific to India and self assessment will work out how much tax credit can be claimed for all countries ? Thanks
Posted Thu, 02 Nov 2023 16:48:26 GMT by HMRC Admin 25 Response
Hi TC55,
The online Self Assessment tax return, is able to work out the relief available for each type of overseas income, as permitted by the double taxation agreement between the UK and the relevant country.
If you are completing a paper tax return, you can ask HMRC to calculate this for you or calculate it yourself, using helpsheet HS263.
Relief for foreign tax paid (Self Assessment helpsheet HS263)
Thank you. 

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