Property Sold Query

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?

Hi moutax,
As you were resident in the UK when you disposed of your property in India, any gain arising from the disposal may be taxable in the UK.
You will need to work out there is a gain.
There is a calculator here to help you do this:
Tax when you sell property
All parts of the calculation must be in pounds sterling.
You do this by converting the acquisition costs into pounds sterling using a just and reasonable exchange rate that applied at the time you acquired the property.
You also do this with the disposal value and , as well as the costs of buying, selling or improving your property from your gain.
These include: estate agents’ and solicitors’ fees and costs of improvement works, for example for an extension (normal maintenance costs, such as decorating, do not count).
Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.
For your convenience, there are exchange rates at: Exchange rates from HMRC in CSV and XML format
And for older rates here:
Exchange rates.
You are free to use any of the supplied rates or one of your own choosing. 
You are entitled to claim the annual exempt allowance to set against your gain.
It does not matter whether you sell the land separtately from the property at different times.
 Both are subject to Capital Gains Tax in the tax year they are disposed of.
The tax treaty between the UK and India, allows India to charge capital gains on the disposal.
It also allows the UK to change Capital Gains Tax, but India has the first opportunity to do this.
Thank you. 

Hi moutax,
No.
This is capital arising from employment income from tax years you were not resident in the UK.
This means that it is not taxable in the UK, if you bring it here.
Any interest the capital generates is taxable and should be declared.
Thank you. 

Hi moutax,
Although NRE interest income is not taxable in India NRE interest income has often been mistaken as non-taxable in the UK this is incorrect.
UK tax residents are subject to UK taxation on their worldwide income and gains subject to any remittance basis claims. 
Under the UK-India Double Tax Convention, NRE account interest taxable in the UK can receive credit for Indian tax even if this has not been paid, as the credit relief amount is calculated through the tax spared mechanism, which deems Indian tax to have been paid at the marginal rates applicable there.
(UK-India DTC notes page HMRC’s Double Taxation Relief Manual DT9553). 
Under the UK-India Double Tax Convention, NRE account interest taxable in the UK can receive credit not exceeding 15% for Indian tax even if this has not been paid. 
UK tax relief not exceeding 15% is available for ten years from the opening date of the NRE account per Article 24(5) UK-India Double Tax Convention. 
NRE interest income should be declared within yout UK Self-Assessment tax return.
Thank you.