UK Tax on Indian Provident Fund

Dear Sir I had completed 10 years of service in India and relocated to the UK in October 2022. I am currently planning to withdraw my Employee Provident Fund and have a few queries related to the taxation of the PF amount in the UK. I would greatly appreciate your assistance in addressing these concerns: 1) I contributed to the provident fund during my time as an Indian tax resident. If I withdraw the PF amount while in the UK tax residency, would the entire withdrawal amount be considered as taxable foreign income, or would it be limited to the interest earned on the funds after my move to the UK? According to the Double Taxation Agreement (DTA) details available on the HMRC website, specifically between India and the UK, it appears that the PF amount may not be treated as taxable foreign income in the UK. The relevant information can be found here: https://www.gov.uk/government/publications/india-tax-treaties/2020-uk-india-synthesised-text-of-the-multilateral-instrument-and-the-1993-double-taxation-convention-in-force#article-19--governmental-remuneration-and-pensions Thank you for your time and assistance.

Hi

HMRC cannot comment on future events as legislation and/or plans may change.

Thank you

Dear Admin, For my case given below , could you please help with tax implications . I came to UK on 2022 on deputation from an Indian company and then left the company and joined local UK company on 2023. Accordingly, my previous indian company has given the indian provident fund as lump sum settlement to my indian bank account on Feb 2024. Now ,while submitting UK tax for 2023/2024 , do I have to declare the whole amount as foreign income or only the interest earned during 2023-2024 needs to be declared , given I want to transfer total amount of money to UK account as soon as possible.

Hi,

Please refer to guidance below.

EIM75550 - The taxation of pension income: lump sums from foreign pension schemes

Thank you.

Hello, I am UK resident (non-domiciled). I am planing to withdraw my provident fund in India which was accumulated before I moved to the UK. The fund has three components (employee contribution, employer contribution, and interest earned). As employee contribution and employer contribution were my income before moving to the UK - categorise as Capital. so I will pay UK taxes on the Interest earned by declaring in SA106. How do I provide details of the employee and employer contribution in my self assessment return? Please suggest.

@hmrc - please guide

Hi,

The payments into the fund occured in tax years, before becoming a UK tax resident. These payment are not taxable in the UK, but the interest they have generated is taxable in the UK. The contributions should not be shown on the tax return.

Thank you.