If you’re a UK tax resident with income or assets abroad, especially in India — this one’s for you.
If you’re a UK resident with earnings in India, you need to prepare for the UK tax on Indian income starting April 6, 2025. This new tax regulation means all global income—whether it’s rent from property, dividends, or capital gains from India—will be taxable in the UK, even if it’s not brought into the country. Here’s what you need to know to stay compliant and avoid surprises.
What the UK Tax on Indian Income Means for You
This change impacts a wide range of income types and financial situations. Here’s a breakdown:
1. Indian Income Will Be Taxable
If you’re earning:
- Rent from Indian property
- Dividends from Indian shares
- Capital gains from selling land, shares, or businesses in India
…then you’ll now have to declare and potentially pay tax on this income in the UK.
2. Offshore Business Income Affects UK Tax on Indian Income
If you hold:
- Foreign bank accounts, or
- Shares in a business registered outside the UK
These will now be under the UK tax lens too.
3. Indian NRIs Living in the UK
Even if you’re a Non-Resident Indian (NRI) for Indian tax purposes, your UK residency status overrides that when it comes to UK taxes.
If you live in the UK and have global income, you’ll be taxed on all of it under the new rules.
UK Ends Remittance Basis—What That Means for Taxing Indian Income
Previously, UK tax residents who were non-domiciled (non-doms) could opt to pay UK tax only on income and gains they remitted (brought) into the UK.
That’s over.
From April 2025 onwards, the UK will follow a worldwide income taxation model for all residents.
What You Need to Do
🔁 Avoid Double Taxation with the India–UK DTAA
The Double Taxation Avoidance Agreement (DTAA) between India and the UK is your safety net. This ensures you don’t pay tax twice on the same income.
➡️ For example, if you’ve paid tax on rental income in India, you may be able to claim a credit for that in the UK.
But this doesn’t happen automatically—you’ll need to report and apply properly.
Know Your Reliefs and Exemptions
There may still be personal allowances, foreign income exemptions, or reliefs available depending on:
- How long you’ve lived in the UK
- Your tax residency status
- Type of income involved
Speak to a qualified tax advisor to take action from April 2025.
Key Takeaways
- Global income = UK taxable income (started on April 6, 2025)
- Indian earnings like rent, capital gains, and dividends will be taxed
- Offshore accounts, businesses, and assets are in scope
- The remittance basis is gone
- Use the India–UK DTAA to prevent double taxation
Read more about the India–UK DTAA on the Indian Income Tax Department site. - Act now to understand your reliefs and obligations
Don’t wait until April 2025 to react—get ahead, get informed, and get your global tax affairs in order.
“Learn more about your UK residency status and how it affects your obligations in our Visa & Immigration section.”
