Binu Jacob

Dear HMRC, I have been an NRE account holder in India since 2006. Post the 10-year mark in 2017, I understand that the interest income from this account no longer qualifies for tax sparing relief. Consequently, I opened a fixed deposit for Rs. 10 Lakh, transferred from the NRE account, with a 5-year maturity period, accruing interest at a rate of 7% per annum cumulatively. I seek your guidance on a specific query: Am I eligible to claim a 15% notional tax credit against the interest income accrued annually from this fixed deposit on my UK tax return? It's my understanding that notional credit considerations apply distinctly to each source of income, hence my query focuses on the fixed deposit derived from the NRE account, not the account itself. I appreciate your assistance in providing clarity on this matter to ensure compliance with UK tax regulations.