Q.1205 Tax in UK on Indian

Bank Accounts

Question: Hi, I am a 60 year old UK NRI in the process of opening an NRE fixed deposit account with Bank of Baroda UK branch. I have already filled forms which are currently in KYC process. I was told that the interest earned will not be taxable in India. I have two questions: 1) Is it a wise of me opening an NRE FD account ? 2) If so, will I be taxed when I repatriate the interest / capital back into my UK account? Thanks you so much. Regards, Answer: Residency plays an important part when it comes to taxation in UK. Consider the following: • If you are a UK resident you pay tax on your worldwide income in UK. • On the other hand if you are now living in India and your permanent home is NOT in UK, you won't have to pay UK tax on your foreign income. • Foreign income if taken back to UK may become taxable Readers are advised to consult their tax consultant for professional taxation advice to get the benefit of latest taxation rules and regulations.