Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 28 Nov 2023 10:57:20 GMT by baby_yoda s
Hello, What are the taxation rules for NRE FD if I transfer my GBP funds to my spouse. We both are living in the UK. As I understand, NRE FD while tax free in India is liable for taxation as global income when filing self assessment in UK. As I am a high rate tax payer, is it allowed for me to transfer my GBP earnings to my spouse and she can open NRE FD in their name. As my spouse is a basic rate tax payer, they will be liable to lesser taxation on the NRE interest. Effectively we are looking at this as a tax saving option. My specific queries are: - Is the above allowed? i.e sending GBP funds to spouse and they investing and paying taxes as per their tax rate - Is there any limit on the funds I can transfer to my spouse? - Is there any limit on the NRE FD deposits? Many thanks.
Posted Wed, 29 Nov 2023 15:57:09 GMT by HMRC Admin 5

There is no capital gains tax liability on the transfer of assets between spouses/civil partners.  
Your spouse may have capital gains tax to pay on the disposal of the asset.

Thank you

You must be signed in to post in this forum.