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Where Taxpayers and Advisers Meet

UK Tax liability - Indian NRO

Pushp
Posts:6
Joined:Fri Jul 21, 2017 10:16 pm
UK Tax liability - Indian NRO

Postby Pushp » Sun Jul 30, 2017 6:00 pm

I have some foreign gains (interest income) in Indian NRO (Non resident Ordinary) account which is non-repatriable to the UK. Tax has been paid in India on these gains as per local tax law. If these funds cannot be/are not remitted back to the UK, am I correct in assuming the following

a) I should be declaring this income on SA106 - Foreign Income pages of self assessment
b) There will be no tax liability on income in UK as income is unremittable
c) I can bring the principal amount back to the UK

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: UK Tax liability - Indian NRO

Postby GlobalTaxAdviser » Mon Jul 31, 2017 11:27 pm

Assuming you are non domiciled you can claim on the remittance or arising basis. There are a number of issues to consider how much, tax rate, how long have you been resident in the UK which will then determine which basis to use. It maybe not possible or tax inefficient to claim remittance basis

If you claim on remittance basis then you need to use SA109 which is not so easy to follow plus you will not be able to file on HMRC Software

Kind Regards

GTA

Pushp
Posts:6
Joined:Fri Jul 21, 2017 10:16 pm

Re: UK Tax liability - Indian NRO

Postby Pushp » Wed Aug 02, 2017 8:41 am

I don't think I can claim remittance basis. Will the above assumptions hold if income were to be taxed on arising basis?

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: UK Tax liability - Indian NRO

Postby GlobalTaxAdviser » Fri Aug 04, 2017 7:20 pm

Hi

You can just file as normal

Thanks

GTA

HarryHowls
Posts:13
Joined:Wed Jul 30, 2014 1:48 pm

Re: UK Tax liability - Indian NRO

Postby HarryHowls » Wed Oct 04, 2017 3:40 pm

Hi Pushp - what were the answers in the end?

I declare mine on SA under non-repatriable income in foreign pages, for which I don't get taxed unless and until I am able to repatriate it. What did you find?

HarryHowls
Posts:13
Joined:Wed Jul 30, 2014 1:48 pm

Re: UK Tax liability - Indian NRO

Postby HarryHowls » Wed Oct 04, 2017 3:42 pm

I should specify that you have to pay full tax on NRE accounts as they are repatriable (and untaxed)


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