Managing finances across the UK and India is genuinely complex. Two tax systems, two sets of regulations, and a lifetime of assets built across two countries — it is easy for important things to fall through the cracks.
Specialist financial planning for UK and India situations covers everything from tax residency and pension management to investment structuring, property, inheritance, and business expansion. It is a niche area — and the difference between getting it right and getting it wrong can be significant. Whether your financial life is rooted in the UK, in India, or split across both, the planning approach needs to reflect that from the very start.
At Atwal Financial, we specialise exclusively in UK-India cross-border financial planning. One of the first things we do with every new client is understand exactly where they fit, because the right advice always depends on your personal circumstances. Below are the five situations we work with most often. Find yours.
1. Returning from the UK to India
Returning to India after years in the UK is one of the most significant financial transitions a person can make — and one of the most commonly mishandled.
The moment you shift your tax residency back to India, a series of obligations kick in simultaneously. Your NRE and NRO accounts need to be redesignated under FEMA rules. Your UK ISAs, which are tax-free in Britain, become taxable as foreign income in India. Any UK pension you start drawing will need to be correctly positioned under the UK-India Double Taxation Agreement (DTAA) to avoid being taxed twice. And the question of what to do with UK property — before or after your departure date — can have significant capital gains implications on both sides.
Most people only start thinking about this a few weeks before they move. The advisors who know Indian tax law rarely understand UK regulations, and the advisors who know the UK rarely understand FEMA or Indian income tax. Atwal Financial works across both systems, which is why our return planning service ideally starts 12 to 18 months before your departure date.
Common areas we help returning NRIs with:
UK pension planning and QROPS advice
NRE/NRO account redesignation under FEMA
ISA and UK investment exit timing
UK property — retain, sell or transfer
DTAA relief on UK income received in India
Repatriation of UK funds to India
Indian tax residency and ITR compliance
Careful planning before and after the move makes an enormous difference to how much of your wealth you actually keep.
2. Living in India with a UK Pension
Thousands of former UK residents living in India still hold UK pensions — workplace pensions, SIPPs, NHS pensions, and the UK State Pension. Managing these correctly from India is more complicated than most people realise.
The UK-India Double Taxation Agreement (DTAA) determines where your pension is taxed, but it does not apply the same way to every type of pension. State pensions and government occupational pensions are generally taxed in the UK. Private pensions and SIPPs may be primarily taxable in India. Getting this wrong means either overpaying tax, or being non-compliant with Indian income tax law — both of which are costly problems.
On top of this, many UK pension providers are not set up to handle overseas residents efficiently. Emergency tax codes are commonly applied to drawdown payments, resulting in significant overpayment that then needs to be reclaimed from HMRC. The UK personal allowance of £12,570 may still be available to you as an Indian resident — but most people never claim it.
Questions we regularly help with:
How is my UK pension taxed when I live in India?
Can I apply for a nil tax (NT) code from HMRC?
Should I transfer my pension to India via a QROPS scheme?
How do I declare UK pension income in my Indian ITR?
How do I reclaim UK tax I have overpaid?
What happens to my UK State Pension while living abroad?
We also review historical filings for clients. In many cases, we identify tax that has been overpaid for years and help reclaim it.
3. NRI Living in India with UK Investments
Many people who have returned to India still hold significant UK-based assets — a share portfolio, ISAs, UK bank accounts, former employer shares, or unit trusts. A common misconception is that because these assets are in the UK, India does not need to know about them.
Under the Black Money (Undisclosed Foreign Income and Assets) Act 2015 and FEMA regulations, Indian tax residents are required to disclose all foreign assets annually in their Income Tax Return under Schedule FA. The penalties for non-disclosure are serious. And importantly, HMRC and India's Income Tax Department share financial data automatically through the Common Reporting Standard (CRS) — so the authorities on both sides already have visibility of what you hold.
At the same time, the UK still taxes non-residents on certain UK-sourced income, including dividends from UK companies and in some cases interest. You may also have UK capital gains tax obligations when you sell UK assets, even as a non-resident. The interaction between the two systems requires careful and coordinated handling.
What we help NRIs with UK investments manage:
Annual Schedule FA disclosure in Indian ITR
UK CGT obligations for non-resident asset disposals
UK dividend and interest tax reclaims (Form R43)
ISA restructuring — tax-free in UK, taxable in India
UK broker account management for Indian residents
Repatriation of UK investment proceeds to India
Inherited UK assets — probate and FEMA-compliant transfer
The goal is full compliance in both countries, combined with a clear long-term investment strategy that works across borders.
4. UK Resident with Indian Assets
A large number of UK residents hold substantial financial interests in India — family property, inherited land, NRE or NRO savings accounts, Indian mutual funds, shares, or business interests. Managing these from the UK creates a set of obligations that are easy to overlook.
As a UK tax resident, HMRC requires you to declare your worldwide income — including everything earned in India. Indian rental income typically has tax deducted at source (TDS) at 30.9% before it reaches you, but the effective UK tax rate on that income may be considerably lower. Claiming the Foreign Tax Credit correctly can recover a significant amount. Most people either do not claim it at all, or claim it incorrectly.
NRE account interest is exempt from Indian tax, but it is fully taxable in the UK and must be declared to HMRC annually. Indian mutual fund gains are treated as foreign capital gains in the UK, with different rules applying than in India. And selling Indian property as a UK resident triggers obligations under both the Indian capital gains tax regime and UK CGT — with the DTAA providing some relief, but only if applied correctly.
Areas we regularly advise UK residents on:
HMRC foreign income and capital gains reporting
Foreign Tax Credit claims for TDS paid in India
NRE/NRO account tax treatment in the UK
Indian property sales — dual CGT obligations
Indian mutual funds and equity — UK tax treatment
Inheritance of Indian assets — succession and FEMA rules
Long-term estate and succession planning across both countries
Without specialist cross-border advice, it is easy for significant planning gaps to develop over time — often without the person being aware until HMRC or the Indian Income Tax Department makes contact.
5. UK Business Entering India
India is the world's most populous country and one of its fastest-growing major economies. For UK businesses, the opportunity is significant — but so is the complexity of getting the entry right.
The structure you choose when entering India matters enormously. A Liaison Office, Branch Office, and Wholly Owned Subsidiary each carry different tax treatment, FDI eligibility,
repatriation rights, and regulatory obligations. Most businesses that run into problems in India chose the wrong structure at the start, often because they received advice from advisors who understood India but not the UK implications, or vice versa.
Permanent Establishment (PE) risk is another area that catches UK businesses out. Even without a formal Indian entity, sustained activity in India — such as sending UK employees there for extended periods, or appointing a dependent agent — can create an Indian corporate tax liability on your UK profits. Transfer pricing is equally important: all transactions between a UK parent and an Indian entity must be documented at arm's length, and Indian transfer pricing authorities are among the most active in the world.
Where we support UK businesses expanding into India:
Entity structure selection — Liaison Office, Branch or Subsidiary
FEMA and RBI approval processes
Permanent Establishment risk assessment
Transfer pricing documentation
GST registration and compliance
Profit repatriation and dividend withholding tax
UK and Indian employment tax for seconded staff
DTAA planning between UK parent and Indian entity
India is a genuine opportunity for UK businesses. Getting the structure and compliance right from the start is what separates the businesses that thrive there from those that find themselves in costly disputes.
Why Personalised UK-India Financial Planning Matters
Cross-border financial planning is never one-size-fits-all. The advice that is right for someone returning to India after 30 years in the UK is completely different from the advice needed by a UK resident managing inherited Indian property, or a UK business setting up operations in Mumbai.
This is why personalised advice from a specialist matters.
A general financial advisor in the UK is unlikely to understand FEMA, DTAA claims, Schedule FA, or Indian ITR requirements. A CA in India is unlikely to understand HMRC reporting obligations, UK pension rules, or UK capital gains tax. You need someone who genuinely understands both — and who treats your financial life as one integrated picture, not two separate problems.
At Atwal Financial, UK-India cross-border planning is all we do. We have deep expertise across both regulatory systems, a trusted network of specialists on both sides, and a track record of helping clients in all five of the situations described above.
Whether you are weeks away from leaving the UK, years into managing assets across both countries, or exploring what an India expansion would mean for your business — a conversation with us will clarify your position and identify the options available to you.
We offer a free discovery call so get in touch - read about our client experiences who had a call with us:
https://atwalfinancial.com/client-testimonials
Disclaimer: This article is for informational purposes only and does not constitute regulated financial, tax, or legal advice. Tax laws are subject to change. Please seek professional advice specific to your circumstances. Atwal Financial advises on UK-India cross-border matters.
