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Posted Mon, 02 Oct 2023 19:22:09 GMT by Barkhakhatri
Hi, I am in process of filling an income tax return and I am getting confused regarding foreign income. I have NRE and NRO accounts in India. I have already filed an income tax return for NRO account interest as those are taxable in India. I need to declare my NRE interest in UK tax return but do I need to declare NRO interests as well or not? Thanks BK
Posted Fri, 06 Oct 2023 13:23:54 GMT by HMRC Admin 20
Hi Barkhakhatri,

In generic terms, 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.
The interest from the NRO account therefore needs to be declared.  Foreign Tax Credit relief is available in respect of tax deducted at source on NRO accounts.

Thank you.

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