British-Indian Nationals and UK Tax on Indian Income

[Jumpingjack]

With the release of new Tax rules, UK nationals who have Income in India are supposed to pay tax in the UK.

My Accountant tells me , even if I do not bring the Income to UK, I have to declare and pay tax in UK depending on how much has been paid at India. I am a high-end tax payer in UK. I have already paid tax on the Indian Income in India as per Indian Income-tax rules, which as per Indian rules amounts to 27%. Because I am a tax payer at 42% in UK, I am being asked to pay the 15% difference tax on the Indian income in UK.

Is this correct advise ? Any help to clarify will be appreciated.

Dr MKL

[gozomark]

Are you resident in the UK ?
Are you domiciled in the UK or India ?

[Jumpingjack]

I am domiciled in the UK. I am now resident in UK for 14 yrs and british nation since 3 years.

[gozomark]

In that case I'm not sure which new tax rules you mean, but if you are domiciled and resident in the UK, you've always needed to declare overseas income to the UK authorities, whether you bring it into the UK or not.

[Jumpingjack]

Well I have declared my overseas income., But do I have to pay tax in the UK after having paid tax in India for income not brought into UK ?

[gozomark]

yes, but you maybe able to offset the tax paid in India if there is a double taxation agreement between India and the UK, which there appears to be given the advice from your accountant.

Based on what you've told us, your accountant is correct.