UK taxability on Indian private annuity payout earnings

Hi , I have doubts on UK taxability for my potential earnings in India. Please guide me. Facts : I am in UK since Dec-2022 , working in private sector. Previous to that ,i had private sector job in India. I have retirement corpus & savings from my india's job , kept in India bank account. Situation : Suppose , I bought a private annuity plan in India using all of my indian funds. Annuity payouts will be credited to a joint account (me & my wife). Potential Earnings from annual 'annuity payouts' will GBP 5000 (more than GBP2000). I have no plans to bring it to UK ever. Questions : Considering above Facts and situation , 1 - Will I be taxed in UK on the earnings from annuity payouts ? 2 - If NO , Do I have to declare it ? 3 - If Yes , Do we have UK government website, to understand complexities about remittance basis and arising basis? Exact link will be very helpful.

Hi maheshangadi,
The default taxation method is the 'arising basis' on world-wide income, which means you would need to declare the annuity payouts in a Self Assessment Tax return.
If you are resident, but not domiciled in the UK, you may wish to consider the 'remittance basis'  which is an alternative method of taxing income and capital gains.
Have a look at section 9 of:
Residence, domicile and the remittance basis: RDR1
To help you dedicde which is your best option.
Thank you. 


 

Hi HMRC Admin 25, Many Thanks for the response.Apriciate it. I am finding useful info on the link shared by you. I have one more question on my savings from my earlier residency in india. Will i be taxed if i bring it to UK? Type 1 - Till Dec-22, i was employed in India. I have savings accumulated in bank account in India till Dec-22. Type 2 - Employee Provident Funds , which i had been contributing to for continuous service of 10 year in India till Dec-22. I had to close it and withdraw the ammount recently ( Sep-23 , When i am UK resident for TAX purpose) and they got credited to my indian bank account. This fund is tax free as per india government rule due to continuous service of 10 years. Please guide me with below questions 1 - Does bringing such funds to UK attract tax in UK? 2 - If NO, do i need to declare it? Thanks & Regards, 

Mahesh angadi

Please refer to Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you