Skip to main content

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

Posted Tue, 21 May 2024 13:26:17 GMT by Curious Cat
I read the NRE account holders can claim 15% tax relief in interest earned in India even if no tax was actually paid there. Is there a time limit on how far you can go back. Another question If a basic rate taxpayer receives £1,000 interest in his NRE account on which he has not paid any tax but claims the 15% tax relief here will he get a refund of £150?
Posted Fri, 24 May 2024 12:52:55 GMT by HMRC Admin 19
Hi,

Under the UK-India double taxation 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 an in individuals UK self-assessment return.                                                                                                                                                                                                                      
If your total interest, including any UK interest, is below £1000, then no refund would be due. The credit for NRE is not refundable.

Thank you.

You must be signed in to post in this forum.