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Posted Mon, 08 Jul 2024 16:27:00 GMT by Somok Choudhury
I would like to know if the interest income from fixed deposits in an NRO account in India is subject to taxation in the UK. I have already paid taxes in India on this interest and have completed the tax filing there. Do I need to declare the interest from my NRO account as foreign income in the UK, or is it exempt and only interests from NRE is required to be declared in UK? (Pls note - I have not brought any money to UK in this case)
Posted Mon, 15 Jul 2024 10:52:00 GMT by HMRC Admin 32 Response
Hi,

By default, UK resident are subject to tax on their worldwide income and gains on an arising basis. I can confirm that your NRO interest is taxable both in India and in the UK. As this is foreign income, you are required to declare it in a Self Assessment Tax Return. Foreign Tax Credit relief is available in respect of tax deducted at source on NRO accounts.  

Thank you.

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