Chetan

Hello HMRC Team, I hope this message finds you well. I recently received a letter from HMRC regarding 'your overseas assets, income, or gains,' and I am seeking some clarification on the matter. To provide some context, I am an Indian national who has been living in the UK for over six years. I am employed by an Indian company that is also registered in the UK, and my only source of income is my UK salary, which is subject to tax deductions through PAYE. I was quite surprised to receive this letter, as I do not have any assets or active income outside of the UK. Here are the details of my situation: 1. My sole income is my UK salary, which is received after tax deductions. 2. I save a portion of my salary and transfer it to my Non-Resident External (NRE) account in India to support my dependent parents. The NRE account is tax-free in India, so I transfer funds there without much thought. 3. During the COVID-19 pandemic, I managed to save a bit more than usual and transferred these extra savings to my NRE account in India. I then placed these funds into Fixed Deposits (FDs) to earn better interest, which helps me provide better support for my parents, which includes there medical bills, running home, repair of house hold etc. 4. I have not been filing self-assessment tax returns annually, as I believed that my salary was fully taxed at source and that there was no need to file. Additionally, any interest earned in my NRE account is tax-free in India, therefore, I pre-assumed it was not required to do any self-assessment to declare that meager interest as it's not taxable in the UK either. 5. Recently, I invested some money from my NRE account in equity through a Systematic Investment Plan (SIP), but these investments are currently at a loss and cannot be considered as earnings. I would greatly appreciate your assistance in understanding the correct approach to respond to this letter. I wish to remain compliant with all tax obligations and avoid any defaults. Your guidance on this matter would be invaluable in helping me respond appropriately to the letter I received. The certificate of tax position is not clear to me none of four option sounds related to my position above and understanding I have. Thank you for your time and assistance. Regards, Chetan Aggarwal