1. I have recently moved to the UK; can I bring my overseas money to the UK?
If you have recently moved to the UK as an immigrant, money earned prior to your arrival is considered "Clean Capital." You can bring this to the UK tax-free through proper remittance channels, provided you comply with the laws of the country where the transfer originates. This does not include income earned overseas after you moved to the UK; there must be a clear segregation between the two. Generally, the sooner you transfer these funds after moving, the better.
2. Is my foreign income taxable in the UK only if I remit the same to the UK?
A "remittance basis" of taxation was available to non-domiciled UK residents until April 2025. However, that regime has ended. From April 2025, for UK residents, all worldwide income is taxable in the UK whether remitted or not. However, for "new arrivers" (migrants in their first 4 years of tax residency), foreign income is not taxable in the UK and can be freely remitted without taxation as and when required.
3. I had previously claimed remittance basis taxation and not paid any tax on my foreign income nor remitted any amount to the UK. Can I remit the same now?
As noted above, the remittance basis has been abolished. Under the old rules, you were required to pay tax in the year of remittance. However, for the first two years of the new regime, a Temporary Repatriation Facility (TRF) is available. This allows you to remit previously untaxed foreign income to the UK at a reduced taxation rate specifically applicable under the TRF.
4. I learnt that foreign income of £2,000 is considered as deemed remittance basis and no need to include such small income on UK tax return?
This provision applied only under the old remittance basis of taxation. This rule was abolished on April 5, 2025, alongside the rest of the remittance basis framework.
5. I do not file returns in India / other country as I have minimal income and / or no tax applicable there?
Even if you have minimal income in India or another country (such as rent, interest, or dividends), it must be included in your UK tax return as foreign income, regardless of whether it is taxable in the originating country. Double Tax Avoidance Agreement (DTAA) principles may be applied to claim tax credits, but the income must be declared alongside your UK income if you are a resident in the UK.
6. I only have tax-exempt income in India like exempt interest on NRE deposits or Insurance policy maturity proceeds. Do I still need to include these?
While this income might be exempt in India, it is not considered tax-exempt in the UK. It must be included in your UK tax return with the applicable tax calculation, considering foreign taxation, DTAA, and any tax credits available in the UK.
7. I only had income from some Mutual Fund redemptions and this was below the income tax threshold in India. It is below Capital Gains Tax (CGT) exemption in the UK as well. Do I still need to include this income for UK taxation?
Most Mutual Funds invested through Indian banks in INR are not recognized for Capital Gains Tax (CGT) in the UK. Consequently, the gains (sale price minus purchase price) must be reported as regular income from foreign sources for UK taxation, and any additional tax, if applicable, must be paid.
8. I only have salary income in the UK and tax on the same is deducted through PAYE. How do I pay taxes on my foreign income or include the same for taxation?
You can register for Self Assessment via the Government Gateway on gov.uk. Once registered, you will be issued a Unique Taxpayer Reference (UTR). Your Self Assessment return can then be filed including all UK and foreign income.
9. Do I need to register for self-assessment and file tax return in all scenarios, if anything additional above PAYE?
If your worldwide income, including UK income, falls within UK tax-exempt limits (such as the Savings Allowance, Dividend Allowance, or CGT allowance), you may choose not to file a Self Assessment. However, once you exceed these specific thresholds, a filing is mandatory.
10. I have casual or income through non-regular work. My income is below personal allowance threshold; do I still need to file a tax return?
Casual or non-regular income is generally treated as self-employment income. You are required to file a Self Assessment return if this income exceeds the registration threshold (currently £1,000), even if the total amount is still below the Personal Allowance.
11. What is the benefit of filing Self Assessment Tax returns if any ways income is below personal allowance threshold?
It may be required for compliance purposes as stated above. Additionally, in some cases, filing can help you claim certain benefits, such as ensuring a qualifying year for the State Pension.
12. Do I need an agent or tax advisor to file Self-Assessment returns?
Simple tax returns can be filed directly online at gov.uk through the Self Assessment service without the need for an agent or tax advisor.
13. What is MTD? When is it applicable?
MTD stands for Making Tax Digital. MTD for Income Tax is separate from MTD for VAT. It is a new introduction starting in April 2026 for quarterly filings, applicable to individuals (not registered as companies) with self-employment or property income above a certain threshold (£50,000 for the 2026-27 tax year).
14. I intend to return to India permanently sometime during the year; how am I taxed in the UK during this and subsequent years?
The year you return to another country to work full-time is considered a "Split Year" for UK residence status. You are considered a UK resident until your departure date and a non-resident after that, provided you haven't spent substantial time in the UK. This is assessed using the Statutory Residence Test (SRT). For subsequent years, if you are a non-resident, only income from UK sources (like UK property) is taxed in the UK.
15. My foreign income was not previously subject to tax due to my ignorance of UK taxation law; can I make it right now?
Yes, you can file a voluntary disclosure through the HMRC online facility. If you are already registered for Self Assessment and have filed returns, those permitted for amendment can be revised without penalty, including the additional income and paying any differential tax and interest.
16. I am in receipt of HMRC notice for some of my income not subject to UK tax; how can this be addressed?
This can be addressed through a "prompted" voluntary disclosure using the HMRC online facility for the same. The disclosure must cover a certain number of years depending on the nature of the income and the assessment of the case. Implications regarding the number of years, interest, and penalties will depend on your individual circumstances.
