UK NRI filing HMRC self-assessment and India ITR: double taxation and DTAA relief
NRI Dash Research Team · Last reviewed: 2026-06-28
UK NRI dual tax filing refers to the requirement for UK-resident Indians to file both a UK Self Assessment tax return and an Indian Income Tax Return when they have India-source income.
India TDS paid on NRO income is credited against UK tax on self-assessment
UK tax residents earning India-source income (NRO interest, rent, capital gains) must declare it on HMRC self-assessment and pay UK tax on it. India has already taxed the same income via TDS. Under the UK-India DTAA, you can credit India tax paid against the UK tax due on that income, effectively paying the higher of the two rates — not both in full. Keep your India Form 16A (TDS certificate) as evidence.
Key points
- HMRC self-assessment: mandatory for India income — If you are UK tax resident with India-source income above the personal allowance threshold, you must register for and file HMRC self-assessment.
- UK-India DTAA Foreign Tax Credit — India TDS paid on NRO interest, rental income and capital gains can be offset against the UK tax charge on the same income via the foreign tax credit mechanism.
- NRO interest: treaty rate 15% — Under the UK-India DTAA Article 11, NRO interest withholding is capped at 15%. Claim the treaty rate via Form 15G (not available for NRIs) — instead, claim via ITR refund for excess TDS and credit the 15% against UK tax.
How UK-India DTAA works in practice
India source income flows: India pays interest, rent or dividends to your NRO account, deducting TDS at 30% (or 15% treaty rate for interest). You receive the net amount.
UK self-assessment: declare the gross India income on HMRC SA100 / SA106 (Foreign Income supplement). UK calculates tax on gross income at your marginal rate.
Foreign Tax Credit: the India TDS already paid is credited against UK tax on the same income. If India TDS (e.g. 30%) > UK rate (e.g. 20% basic rate), no UK top-up is due. If UK rate > India TDS, you pay the difference to HMRC.
Capital gains: UK imposes CGT on India property gains for UK residents. India also taxes LTCG at 12.5%. Credit the India LTCG tax against UK CGT — DTAA Article 13 provides relief.
HMRC filing timeline for India income
January 31 each year: HMRC self-assessment online filing deadline for the prior tax year (April 5 ending). For India income, this coincides with India's ITR filing having been completed the previous July.
Keep India Form 26AS and Form 16A to evidence TDS paid — HMRC may request this during an enquiry.
UK tax year: April 6 to April 5 (does not align with India's April 1 to March 31 — use the proportionate amounts for the UK year when the Indian year straddles two UK years).
Frequently asked questions
Does the UK-India DTAA cover NRE FD interest?
NRE interest is exempt from India tax. Under UK rules, it is still UK-taxable as foreign income (UK taxes UK residents on worldwide income). No India FTC is available since India did not tax it. Declare NRE interest on SA106.
Do I need to report India capital gains on HMRC if I already paid India LTCG tax?
Yes. UK taxes residents on worldwide capital gains. Report the India property gain on the CGT pages of self-assessment. Credit the India LTCG tax (12.5%) against UK CGT (18% or 24% depending on your income). You typically owe the difference to HMRC.
What is SA106 and when do I use it?
SA106 is HMRC's Foreign Income supplement — use it to declare non-UK income including NRO interest, India rental income and India dividends. It also has a section for foreign tax paid (the FTC claim).