NRI Tax

"I never declared my Indian income to HMRC - how do I put it right?"

1 November 2026

5 min read

By Suyesh Sharma

Written by Suyesh Sharma, FCCA, Founder and Managing Director, Metta Accountants.

Published 1 November 2026

"I have been living in the UK for years and never declared the interest and rent I get in India. Am I in trouble, and how do I put it right?" We hear this often. Many people only learn that Indian income is reportable in the UK long after they became UK resident. The earlier you deal with it, the better the outcome tends to be.

Section 1

Why Indian income is usually reportable in the UK

If you are UK resident, the UK generally taxes your worldwide income and gains. Indian income does not drop out of the picture because it was taxed in India, or because it was tax-free there.

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Common examples

Income and gains from India

Interest on NRO accounts and fixed deposits, rent from Indian property, dividends, and gains on selling property, shares or mutual funds.

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Tax-free in India

Not automatically tax-free here

Interest that is exempt in India, such as on some NRE accounts, can still be taxable in the UK if you are UK resident.

Section 2

Why HMRC may already know

India and the UK exchange financial account information automatically each year. Details of bank and investment accounts held by UK residents can reach HMRC without you telling them. Differences between what HMRC holds and what you have reported are what often start an enquiry.

⚠ Do not wait for a letter. Disclosing before HMRC contacts you is generally treated more favourably than being found. HMRC can also look back further for offshore matters than for UK-only ones.

Section 3

How to put it right

Establish the facts: which accounts, properties and investments, and which tax years, are involved.
Work out the UK tax: UK tax on each year, with credit for Indian tax already paid under the UK-India treaty, so you are not taxed twice.
Use the Worldwide Disclosure Facility: the usual route for overseas matters, which lets you come forward and agree the tax, interest and any penalties.
Fix the future: register for Self Assessment if needed and report Indian income correctly from now on.

We take care of both sides. The UK work is carried out by Metta Accountants and the Indian work by our partner firm, Metta Accountants India, as two separate engagements with the teams working together, so the figures in both countries line up. See our UK-India tax service for more.

Not sure where you stand?

Book a confidential call. Nothing is reported to HMRC until you decide.

Metta Accountants - UK Tax Specialists · Harrow, London

Disclaimer: This article is for general information purposes only and does not constitute personal tax advice. All information is based on UK tax law and HMRC guidance as at November 2026. Individual circumstances vary and you should seek professional advice before taking any action. Metta Accountants Limited is regulated by ACCA (company no. 12229608).

FAQs

Frequently Asked Questions

Do I have to declare Indian income in the UK?

If you are UK resident, generally yes. UK residents are taxed on their worldwide income and gains, subject to reliefs such as credit for tax paid in India. Whether you owe extra UK tax depends on the figures.

Is NRE account interest taxable in the UK?

It can be. Interest that is tax-free in India is not automatically tax-free in the UK for someone who is UK resident, and it usually needs to be reported.

Can HMRC find out about my Indian bank accounts?

India and the UK exchange financial account information automatically each year, so HMRC may already hold details of accounts held by UK residents.

What is the best way to correct past years?

Usually a voluntary disclosure, most often through the Worldwide Disclosure Facility for overseas income. We establish the facts, calculate the UK tax with credit for Indian tax, and handle the disclosure with HMRC.

Will I pay tax twice on the same Indian income?

You should not, if relief is claimed correctly. The UK-India tax treaty and foreign tax credits are designed to prevent it, but the claim has to be made properly in the UK.