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Posted Wed, 09 Nov 2022 14:26:36 GMT by Ish
I am UK tax resident with some foreign (Indian) income from interest and savings. For self assessment reporting, I have below 2 queries. 1. India provides a tax-free interest savings product called PPF (Public Provident Fund). Is the interest earned/credited in PPF account taxable in UK and needs to be included in the foreign income (from interest) for UK self assessment returns? If PPF interest is indeed taxable in UK, does it have the same foreign tax credit relief (as described in DTAA section 24 (5)) as applicable for interest in NRE account? 2. If the foreign interest income earned is > 2000 £, say for example 5000 £, do we include 5000£ or 3000£ for self assessment? I read that if the interest income < 2000 £ it is not taxed but I could not find guidance on amount to be included if it is > 2000 £.
Posted Mon, 14 Nov 2022 15:26:58 GMT by HMRC Admin 17

Hi,
 
Withdrawals from the Indian Public Provident fund by a UK tax residents will be taxable in the UK as a pension, as described in
Article 19 of the UK / Indian double taxation agreement:

2020 UK-India Synthesised text of the Multilateral Instrument and the 1993 Double Taxation Convention — in force   . 

We are unable to comment on hypothetical or actual scenarios.

Thank you.

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