UK tax for NRIs and UK citizens moving to India — 2026 guide

UK tax runs on two key moving parts: your residential status under the Statutory Residence Test (SRT), and — until April 2025 — your domicile. The latter half of that framework changed significantly on 6 April 2025 with the abolition of the non-domicile regime. Combined with India's own day-count residence rules, a UK-to-India (or India-to-UK) move creates two separate tax-residency questions that interact through the India-UK Double Taxation Avoidance Agreement. This page covers the 2026 position: how the SRT decides UK residency, what the post-April-2025 FIG regime does for new UK arrivals, UK taxation on UK-source income (rent, pension, property gains) when living in India, and the planning moves that go with a move.

Who this page is for

UK citizens of Indian origin (British-citizen OCIs, British-born Indians) relocating to India for long-term settlement.
Indian citizens who lived in UK on work / ILR / Settled Status who are going back to India permanently.
Indian-resident OCIs / NRIs with UK ties — UK property, UK pension, UK bank accounts, UK workdays — who need to understand UK-side obligations.

For the reverse direction (moving TO the UK from India), see immigrating to the UK. For the Indian-side residency framework see tax residence in India. For the general NRI-tax rules see NRI taxation in India.

The Statutory Residence Test

The SRT, in force since 6 April 2013, replaced the older day-count + case-law framework. It runs as a three-step test, applied in order, for each UK tax year (6 April to 5 April).

Test 1 — Automatic Overseas Test

You are non-resident for the UK tax year if any of these apply:

Fewer than 16 days in the UK in the tax year, AND you were UK-resident in at least one of the three preceding tax years.
Fewer than 46 days in the UK in the tax year, AND you were not UK-resident in any of the three preceding tax years.
Full-time work overseas (35+ hours per week average, with no significant breaks) AND fewer than 91 days in the UK AND no more than 30 days working in the UK.

If Test 1 is met, you are non-resident; stop here.

Test 2 — Automatic UK Test

If Test 1 is not met, you are UK-resident if any of these apply:

183 or more days in the UK in the tax year.
Your only home is in the UK for at least 91 consecutive days (with at least 30 falling in the tax year).
Full-time work in the UK (75% or more of workdays in any 365-day period falling in the year).

If Test 2 is met, you are resident.

Test 3 — Sufficient Ties Test

If neither Test 1 nor Test 2 gives an answer, you fall to the ties test. Five possible ties:

Family tie — spouse / civil partner / minor child UK-resident.
Accommodation tie — accommodation available in the UK for 91+ consecutive days that you use for at least one night.
Work tie — 40+ days of UK work (3+ hours per day).
90-day tie — present in the UK for 90+ days in either of the two preceding tax years.
Country tie (leavers only — applies when you were UK-resident in at least one of the three preceding tax years) — more days in the UK than in any other single country in the tax year.

The day-count threshold for becoming resident depends on the number of ties and whether you are an "arriver" or "leaver":

Leavers (UK-resident in at least one of the preceding three tax years):

UK days	Ties required for residence
<16	Non-resident (Automatic Overseas)
16–45	4 ties
46–90	3 ties
91–120	2 ties
121–182	1 tie
183+	Resident (Automatic UK)

Arrivers (not UK-resident in any of the three preceding tax years) — similar ladder but one threshold stricter, and the country-tie does not apply.

For OCIs / UK citizens who have been UK-resident long-term and are leaving, the leaver's ladder is what matters. A person with a UK home, a UK-resident spouse, and UK family visits (ties) can become UK-resident on as few as 46 days in the UK. Frequent UK visits after nominal relocation are the single most common way people lose non-resident status inadvertently.

Split-year treatment

In the year you leave or arrive, the UK tax year can be split — you are treated as UK-resident for the part-year you were in the UK and non- resident for the part-year abroad (or vice versa) — if specific SRT conditions are met. Eight "Cases" of split-year treatment exist (for different scenarios: leaving UK for full-time overseas work, ceasing to have a UK home, etc.).

Split-year is not automatic — you must meet a specific case. For most UK-to-India relocations, Case 1 (leaving for full-time overseas work) or Case 3 (ceasing to have a UK home) is the applicable route.

The April 2025 non-dom abolition

Historically, UK-resident individuals who were non-domiciled (non-doms) could claim the remittance basis — paying UK tax only on UK- source income and any foreign income / gains remitted to the UK.

The non-dom regime was abolished from 6 April 2025 and replaced with:

The Foreign Income and Gains (FIG) regime

New UK arrivals who were non-UK-resident in all of the 10 preceding tax years get a 4-year exemption on foreign income and gains (with some exceptions for specific asset types and trusts).
After the 4-year window, they become subject to worldwide taxation on the arising basis.
Long-term UK residents (including former non-doms) are immediately subject to worldwide taxation from 6 April 2025 onwards, with transitional rules on pre-2025 foreign income / gains.

Effect for UK citizens of Indian origin

Most UK-born / long-resident British citizens of Indian origin were already on the arising basis (taxed on worldwide income as UK-residents). The 2025 change does not affect them.
Former non-doms in the UK now face worldwide tax on the arising basis.
Indian-origin UK-residents considering a return to India can no longer rely on remittance-basis shelter while winding down UK ties.

The new residence-based IHT regime

Inheritance Tax (IHT) has also moved from a domicile basis to a residence-based regime from 6 April 2025:

Long-term residents (UK-resident for 10+ of the preceding 20 tax years) are within the UK IHT net on worldwide assets.
IHT tail — the 10-year threshold keeps long-term residents within UK IHT for a further period after they leave the UK (the "tail" extends 3 to 10 years depending on length of prior residence).
Short-term residents (less than 10 of the past 20 years UK-resident) only face IHT on UK-situs assets.

This is a material change for Indian-origin long-term UK residents planning a return to India — worldwide-asset IHT exposure does not evaporate immediately on departure.

UK tax obligations after moving to India

Even as a UK non-resident under the SRT, certain UK-source income remains UK-taxable.

UK rental income — the Non-Resident Landlord

Scheme (NRLS)

Tenants or letting agents must withhold basic-rate UK income tax (20%) on rent paid to a non-resident landlord, unless the landlord holds an NRLS approval (HMRC Form NRL1).
With NRL1 approval, rent is paid gross and the landlord files an annual UK self-assessment return (SA100 with SA105 property pages and SA109 non-residence pages).
UK allowable expenses (mortgage interest — restricted to basic-rate relief, repairs, insurance, management fees) are deductible.
UK tax is computed at UK resident rates but without UK personal allowance unless the non-resident is a UK / EU / other-qualifying national (most British-citizen OCIs continue to get the personal allowance).

UK pension

UK State Pension — payable to recipients abroad. Frozen at the rate payable on the date of emigration for recipients in India — no annual uprating because India is not on the UK's uprating-agreement list.
UK private / occupational pension — UK withholding tax at source (unless treaty-relief certificate filed).
Pension commencement lump sum (25% tax-free cash) — remains tax-free in the UK but may be taxable in India for an Indian tax resident.
UK State Pension taxation — the India-UK DTAA allocates taxing rights. Typically UK State Pension is taxable in UK source country (Article 19 — government pensions); India usually exempts or credits.
UK private pension under Article 20 of the treaty is typically taxable only in the residence country (India).

For a practical approach on Indian-side recognition of UK pension, see Indian pension and the US DTAA — the UK framework is analogous, with different article numbers.

UK capital gains tax on UK property

Since April 2015 (residential) and April 2019 (all UK land / property), non-resident capital gains tax applies:

Rebased cost — for residential property, April 2015 value is the starting cost for non-residents who owned the property pre-2015.
Rates — 18% / 24% depending on income band for residential; 10% / 20% for commercial and non-residential property (adjusted from time to time in UK Budgets).
30-day / 60-day reporting — on disposal, the non-resident must file a UK return within 60 days and pay the tax.
Annual self-assessment reconciles.

UK employment income post-departure

UK workdays continue to be UK-taxable even for non-residents — pro rata of salary referable to those days.
Short-term business trips (typically under 30 days in a year) often qualify for treaty relief under the India-UK DTAA's employment-income article.

UK bank interest / dividends

UK bank interest to a non-resident — no UK withholding; no UK tax unless sourced in UK.
UK company dividends to a non-resident — generally not subject to UK dividend tax (the 8.75% / 33.75% / 39.35% UK dividend rates apply only to UK residents).

The India-UK DTAA

Signed 1993, amended by a 2013 Protocol (and further administrative updates). Key provisions for UK-citizen Indian-residents:

Article 15 (Employment) — employment income taxable only in residence country unless work performed in the other country.
Article 16 (Directors' fees) — taxable in the country where the company is resident.
Article 19 (Government service) — government pensions taxable only in the paying state, with a "resident and national" exception matching the US treaty structure.
Article 20 (Pensions and annuities) — private pensions taxable only in residence country.
Article 22 (Capital) — capital-asset provisions.
Article 24 (Relief from double taxation) — either exemption method or credit method; UK typically uses credit, India uses credit.

Invoking the treaty in India requires:

PAN (NRI status updated).
UK Certificate of Residence (TRC) — obtained from HMRC online.
Form 10F filed electronically on incometax.gov.in.

Invoking the treaty in the UK: forms vary by income type — typically a Form DT-Individual or equivalent claim form filed with HMRC's International Tax Office.

The India side — for a moved-to-India UK citizen

On moving to India, the UK citizen (OCI, British passport holder with right to live in India via OCI) runs through the Indian residency framework:

FEMA: resident from the day of arrival with intent to stay. NRE / NRO / FCNR accounts available; existing UK-domestic accounts continue; Liberalised Remittance Scheme (LRS) applies for outward remittance once resident.
Indian Tax Act: day-count determines residency. Typical arrivals in H2 of FY get two to three years of RNOR status — foreign income (UK salary, UK rental, UK pension, UK capital gains) outside Indian tax during the window.
Post-RNOR: ordinarily resident; worldwide taxation in India with DTAA credit for UK tax already paid.

For the full Indian-side framework see tax residence in India and NRI taxation in India.

Leaving the UK — the P85 and SA109 procedure

Form P85

Filed with HMRC on leaving the UK.
Either online at gov.uk or by post.
Notifies HMRC of departure, expected residency status, and any pending UK tax reconciliation.
Triggers an in-year repayment if you have been over-taxed through PAYE.

Form SA109 — non-residence pages

Part of the Self-Assessment return (SA100).
Confirms SRT status for the year, any split-year treatment claimed, SRT days count.
Must be filed on paper if using SA109 (historically — HMRC online filing has been limited for non-residents; use commercial software or agent service for digital submission).
Filing deadline: 31 January following the end of the tax year (5 April).

Evidence to retain

Flight records and passport stamps proving exact UK arrival / departure dates.
India arrival paperwork (e-Arrival Card, FRRO registration if applicable, OCI card endorsements).
Working-abroad evidence — employer letter, overseas employment contract, payslips.
No-UK-home evidence — property sale / rent- out agreement, utility-cancellation letters.
Family-in-UK evidence (or absence thereof) — spouse's location, children's schooling.

UK National Insurance and State Pension

Class 2 voluntary NI — Indian-resident former UK workers can continue paying Class 2 voluntary NI to maintain State Pension entitlement (currently £3.50/week; check current rate on gov.uk).
Class 3 voluntary NI — higher rate (£17.75/week currently) for those who don't qualify for Class 2. Similar purpose.
Years needed for full State Pension — 35 qualifying years (new State Pension).
Years needed for any State Pension — 10 qualifying years.
Frozen pension — UK State Pension paid to India-resident pensioners is fixed at the emigration-date rate (no annual uprating, as India has no reciprocal social-security agreement with UK).

Common pitfalls

Spending more than 90 days in the UK without checking the SRT ties. A single year's residency ping can unravel years of planning.
Keeping a UK home "just in case" — accommodation tie under SRT catches many returnees.
Failing to file SA109 / NRLS forms. The UK default for a non-resident landlord is 20% withholding; NRL1 approval is worth the paperwork.
Forgetting the April 2025 non-dom abolition. Former non-doms planning a long-term UK stay now face arising-basis taxation immediately.
Overlooking the 10-year IHT rule under the new residence-based IHT regime. UK IHT exposure doesn't end on the day you fly to India.
Claiming the UK personal allowance without qualifying. British citizens retain the personal allowance as non-residents; some other nationalities do not.
Not maintaining NI contributions — lost qualifying years cannot easily be bought back beyond 6 years (although HMRC periodically opens longer buyback windows).
Taking a UK pension lump sum while Indian-resident without Indian-side tax planning. The 25% tax-free UK cash is UK tax-free but may be taxable on arising basis in India.
Missing the 60-day UK property-disposal return deadline.
Assuming the old 90-day / 183-day rule still governs UK residency. It doesn't; SRT has been in force since April 2013.
Not invoking India-UK DTAA on UK-source pension / rent taxable in India after RNOR.

Checklist — moving from UK to India

Prepare the move — timing ideally mid-UK-tax-year for split-year treatment; September–December arrival in India for maximum RNOR window.
Run the SRT for the year of departure — confirm split-year case applies; project residency for subsequent 3–4 years.
Sell / rent out the UK home — severing the accommodation tie matters for SRT.
File NRL1 with HMRC if UK property will be rented.
File Form P85 on leaving the UK.
Establish Indian residence — OCI if not held; register with FRRO (typically not required for OCI).
Open Indian NRE / NRO / FCNR accounts before arrival; redesignate existing accounts on return.
Update UK bank, investment, pension providers with Indian address and non-resident status. Some providers (particularly retail banks) close accounts for non-residents.
Arrange voluntary NI if UK State Pension entitlement matters.
File UK Self-Assessment with SA109 for the departure year and subsequent years with UK-source income.
Apply for Indian PAN and open NRO demat if Indian investments planned.
Maintain SRT-compliant day counts — cap UK visits; track contemporaneously.
Invoke India-UK DTAA on Indian-side TDS for UK pension / rental once India becomes the residence country for treaty purposes.
Plan the IHT exposure — new residence- based rule keeps long-term residents in UK IHT for up to 10 years after departure.

Summary

UK tax residency in 2026 runs on the Statutory Residence Test — automatic overseas test, automatic UK test, and sufficient-ties test in sequence.
Days + ties — a UK leaver with a UK home, UK family and frequent UK visits can remain UK-resident on as few as 46 days in the UK.
Split-year treatment is available for the year of departure under specific SRT Cases.
Non-dom regime abolished from 6 April 2025; replaced by a 4-year Foreign Income and Gains exemption for new UK arrivals, with everyone else on the arising basis.
UK IHT moved to a residence-based regime in April 2025 — long-term residents remain within worldwide-asset IHT for up to 10 years after departure.
UK-source income (rent, UK pension, UK property gains) remains UK-taxable for non-residents — the NRLS, SA109, 60-day property-disposal return all apply.
India-UK DTAA grants relief; PAN + HMRC TRC + electronic Form 10F unlock treaty rates in India.
UK State Pension is frozen for India-resident pensioners; voluntary NI Class 2 / 3 can buy additional qualifying years.
Form P85 on departure; SA109 annually are the key UK filings.

For the Indian-side residency mechanics, see tax residence in India. For the broader NRI tax framework, see NRI taxation in India. For DTAA mechanics generally, see DTAA and how it works. For the Indian-pension-to-US analogue (structurally similar mechanics), see Indian pension and the US DTAA. For the UK-passport-holder's Indian passport questions, see Indian passport in the UK. For the return-to-India framework across banking and customs, see returning to India.