Information and tips (guidance) for NRIs in the UK — 2026

The United Kingdom is home to roughly 1.9 million people of Indian origin — long-established, multi-generational British-Indian communities alongside more recent arrivals on Skilled Worker visas, students on Graduate Route, and professionals on intra-corporate transfer. The UK framework for Indian NRIs has had two major recent shifts: the Statutory Residence Test replaced the old 90-day rule in 2013, and the non-domicile regime was abolished in April 2025 and replaced with the four-year Foreign Income and Gains (FIG) regime.

Note: This page is the practical hub. For the detailed mechanics of UK tax residency, the SRT, FIG, and the UK-side filing forms (P85, SA109), see the UK tax for NRIs article.

Two tax systems, two residency tests

Indians in the UK deal with two parallel tax frameworks.

UK tax residency — the Statutory Residence Test

The Statutory Residence Test (SRT) decides UK tax residency through three sequential tests:

Automatic overseas tests — if any one applies, you are non-resident for the year.
Automatic UK tests — if any one applies, you are UK resident.
Sufficient ties test — if neither automatic test resolves the position, residency depends on a sliding scale of UK ties (family, accommodation, work, 90-day, country) against days in the UK.

UK tax residents are taxed at marginal rates of 20% / 40% / 45% (England and Wales; Scotland has separate bands) plus National Insurance on earned income.

Indian tax residency for the same person

Under the Income Tax Act, you are an NRI if you spend less than 182 days in India in a financial year (1 April to 31 March).
A 120-day rule applies if you are an Indian citizen / PIO with ₹15 lakh or more of Indian-source income — staying 120 to 181 days in India can make you Resident but Not Ordinarily Resident (RNOR).

Tip: The UK tax year is 6 April to 5 April, the Indian year is 1 April to 31 March — close but not identical. Split-year treatment is available in the UK for the year of arrival or departure, which usually aligns the two countries cleanly.

The 2025 non-dom abolition and the new FIG regime

For decades, non-domiciled UK residents could claim the remittance basis — foreign income / gains were taxable in the UK only if remitted into the UK. From 6 April 2025 this regime was abolished and replaced with the four-year Foreign Income and Gains (FIG) regime:

New arrivals (becoming UK tax resident after a 10-year non-residence period) get four years of full exemption on foreign income and gains.
After year four, worldwide taxation kicks in regardless of remittance.
Long-term existing non-doms have transitional reliefs; the rules are complex and reward early planning.

Practical impact for Indian NRIs in the UK:

The planned tenure in the UK matters more than ever. Stay under four years and your Indian dividend, NRO interest and Indian-property gains stay UK-tax-free.
After the four-year window, plan the location of large Indian capital gains carefully.

See UK tax for NRIs for the detailed treatment.

The India-UK DTAA

The double-tax treaty between India and the UK has been in force since 1993 and remains the basis for relief on both sides. Key points:

Salary income earned in the UK is taxed in the UK; the same person filing in India as an NRI does not pay Indian tax on UK salary.
Indian-source income (rent, NRO interest, capital gains on Indian shares) is taxable in India; foreign tax credit is claimed on the UK return.
Dividends from Indian companies to UK residents are subject to 15% withholding under the DTAA.
Interest paid out of India to UK residents is capped at 15% under the treaty.
Pensions — the UK State Pension and most private pensions paid to Indian residents are taxable in India under the DTAA tie-breaker.

To claim DTAA benefits in India you need a TRC from HMRC and Form 10F filed online on the Indian tax portal.

UK rental income — the Non-Resident Landlord scheme

Many UK Indians buy a property in India during their UK stay and rent out their UK flat after returning. The Non-Resident Landlord (NRL) Scheme governs the UK side:

The letting agent (or tenant, if no agent) must withhold 20% basic-rate tax on the rent.
Withholding can be disapplied by HMRC approval (Form NRL1) if your UK tax affairs are up to date.
Allowable expenses (mortgage interest, repairs, agent fees) reduce the taxable amount on the annual UK Self-Assessment return.

UK rental income is also reportable in India under the DTAA tie-breaker once you become Indian-resident, with credit for UK tax paid.

Banking — what to open in India

NRIs in the UK typically run three Indian rupee / foreign-currency accounts:

NRE (Non-Resident External) — fully repatriable, interest tax-free in India.
NRO (Non-Resident Ordinary) — for Indian-source income. Interest is taxable with TDS at 30% unless DTAA relief is claimed via Form 10F + TRC. Repatriation capped at USD 1 million per FY.
FCNR (Foreign Currency Non-Resident) deposit — fixed deposits in GBP, USD, EUR and other major currencies for 1-5 years. Interest is tax-free in India.

Indian banks with UK presence: State Bank of India (UK) with a full UK banking subsidiary, ICICI Bank UK (authorised PRA), Bank of Baroda UK, Punjab National Bank International and Canara Bank. Mainstream UK banks (HSBC, Barclays, Lloyds, NatWest) handle the day-to-day UK side.

Tip: HSBC Premier and other relationship-tier banking products often offer multi-currency holding and free / cheap international transfers — useful if you regularly move money between the UK and India.

See NRI bank accounts in India.

GBP-to-INR — the remittance corridor

GBP-to-INR is a high-volume, mature corridor. The realistic options in 2026:

Wise — transparent mid-market FX with a small upfront fee. Default for most under-GBP 25,000 transfers.
Remitly — competitive promotional rates and large Indian-bank network.
ICICI Money2India, SBI UK Express Remit, Remit2India — Indian-bank corridors.
HSBC / Barclays / NatWest International Money Transfer — bank wires, fine for very large transfers (GBP 50,000+).
Western Union / MoneyGram — high street option; generally worse rates than the apps.

Tip: GBP-INR moves with sterling versus the dollar. If the dollar weakens, sterling tends to follow upward against INR. For transfers above GBP 10,000, a one-week watch on the rate is worth doing.

See transferring money to India.

Investing in India from the UK

UK-resident NRIs can hold:

Indian listed equities through a PIS account — capital gains taxed in India.
Indian mutual funds — most AMCs accept UK-resident NRI subscriptions. UK reporting status (the equivalent of US PFIC) is less punitive, but UK-side tax on gains follows offshore-fund rules.
NPS — open to NRIs.
Real estate in India (residential / commercial; not agricultural).

While in the four-year FIG window, foreign income and gains are UK-tax-exempt. After that window, the UK taxes worldwide income.

Buying property in India from the UK

Same rules as elsewhere — residential and commercial only, funds via NRE / NRO / FCNR, USD 1 million repatriation cap. Home loans from Indian banks are widely available to UK-based NRIs through their UK subsidiaries (ICICI UK, SBI UK).

See property tax for NRIs and transferring funds for property.

OCI for British citizens of Indian origin

If you (or your parent / grandparent / great-grandparent) held an Indian passport, you are eligible for an OCI card.

UK-specific points:

The UK pipeline runs through VFS Global. Centres in London, Birmingham, Manchester, Edinburgh and Glasgow (and others) act on behalf of the High Commission of India, London.
Apply online at ociservices.gov.in, then submit documents physically at the VFS centre.
Spouse-category OCI requires two years of registered marriage.
OCI re-issue required only on the under-20 and first-passport-after-50 milestones.
A Surrender Certificate is required for former Indian citizens who took British citizenship on or after 1 June 2010, before they can apply for OCI.

See the OCI application guide and Indian passport in the UK.

FATCA, CRS and UK-India information sharing

Both HMRC and India (CBDT) are signatories to the OECD Common Reporting Standard, and a long-standing exchange-of-information arrangement covers automatic sharing of account data. UK banks file annually on non-resident and foreign-tax-resident customers; HMRC exchanges that data with India. The reverse is also true.

Practical implications:

Declare your UK accounts in the Indian ITR's Schedule FA if and when you become an Indian tax resident again.
Mismatches between what you declare and what is reported under CRS are flagged automatically.

Returning to India — the UK-specific timing trap

The single most common error among UK-based NRIs returning to India long-term:

Cashing out UK pensions or ISA holdings, selling the UK home, and remitting the proceeds in the same Indian financial year as the move back — losing the RNOR shelter on now-Indian-taxed foreign income, and missing the split-year treatment on the UK side.

Plan the timing so:

Split-year treatment (UK SRT) is claimed on the P85 / SA109 to bound UK tax to the pre-departure portion.
Pension lump sums from SIPP / personal pensions are paced through the RNOR window where possible.
The UK rental property (if any) is set up under the NRL scheme before departure to avoid 20% withholding leakage.
The UK ISA wrapper is closed deliberately — India does not respect the ISA tax-free status.

The RNOR window typically gives 2 to 3 years of foreign-income exemption after return — see returning to India and the deeper UK tax for NRIs article.

Quick-reference checklist

Topic	What to do
UK tax residency	Apply the SRT each year; claim split-year on arrival / departure.
FIG regime	If under four years of UK residence, plan large Indian gains around the window.
DTAA	TRC from HMRC + Form 10F for India-side withholding relief.
Bank accounts	NRE for UK-source money; NRO for Indian-source; FCNR for GBP / USD deposits.
Remittance	Wise / Remitly for under GBP 25,000; bank wire for larger.
UK rental	Register on NRL scheme before becoming non-resident; file Self-Assessment annually.
Investments	Indian equities via PIS; mutual funds direct (offshore-fund rules apply).
Property	Residential / commercial only; funds via NRE / NRO; USD 1 M / FY repatriation cap.
OCI	Apply through VFS London / Birmingham / Manchester / Edinburgh / Glasgow.
Returning	Time pension lump sums, ISA closure, and UK property sale around split-year and RNOR.

A note on what this article is — and is not

General guidance, not professional advice. This page is a practical orientation hub for NRIs in the UK; it is not tax, legal, or financial advice. The 2025 abolition of the non-domicile regime, the new four-year FIG window, Statutory Residence Test day-counting, and the Non-Resident Landlord scheme are all areas where the answer turns on the specific facts of the year. Verify the current position with a qualified Indian Chartered Accountant and a UK-based tax adviser (ATT / CTA) familiar with India-UK cross-border issues before acting on anything material.

Where to go next

UK tax for NRIs — detailed guide — SRT, FIG, P85, SA109.
NRI bank accounts in India.
Transferring money to India.
India-UK DTAA.
Indian passport in the UK.
Immigrating to the UK.
OCI application guide.
Returning to India — the RNOR framework.
Property tax for NRIs.
NRIs in USA, NRIs in Canada, NRIs in Australia, NRIs in Singapore, NRIs in UAE — sister hubs.