zorba 74

From previous discussions here , I understand that: 1. As a UK resident for tax purposes and UK domiciled I pay tax on my global income 2. I have some investments in mutual funds in India- I understand that if they are " non-reportable" funds, and hence any income arising from selling them would be then will be classed as general income and not capital gains However I had a few more follow up questions: 1. In India there are some other investment options called " Unit Linked Investment Plans" or ULIPS - (A ULIP is an insurance plan that offers the dual benefit of investment to fulfil long-term goals, and a life cover . The premium paid towards a ULIP is divided into two parts. A part of it is contributed to the life cover, and the remaining is invested in the fund of your choice). On surrender or maturity of such a policy some profit might arise due to growth of the money in the funds invested. This is classified as " capital gains " in india. What are they considered in UK ? Are they considered as capital gains in UK ? If so assuming they remain under the annual capital gains allowance ( currently 3000) do they have to be declared or taxed in UK? 2. Separately- long term capital gains might well be taxed already in India , ( 10% currently). If this is considered as general income in UK and not capital gains, do I then pay the difference between the tax already paid ( 10%) and my marginal tax rate in UK( eg : 40%) as per Double Taxation Avoidance Agreement rather than being again taxed in full in UK ? How do I show this in my tax return? Many thanks