Received an HMRC letter about overseas income or assets in India?

HMRC correspondence may relate to bank interest, NRO or NRE balances, FCNR deposits, fixed-deposit interest, Indian rental property, dividends, mutual funds, shares, pensions, insurance-linked investments, family-held accounts, inherited assets or proceeds from selling property. The existence of an asset does not always create UK tax, but income, gains, ownership and reporting still need to be checked by tax year.

UK treatment depends on residence, the tax year, the source and nature of the amount, and any relief or exemption available. From 6 April 2025 the former remittance-basis regime was replaced by a residence-based foreign income and gains regime for qualifying new arrivals. Earlier years may still require analysis under the rules that applied at the time, including claims, remittances and historic residence.

VMK builds a year-by-year residence and filing chronology before assuming Indian income should be added to a UK return. The current HMRC guidance on the foreign income and gains regime is used for the post-April-2025 position.

The Worldwide Disclosure Facility is HMRC's route for a UK tax liability connected wholly or partly with an offshore issue. After notifying HMRC and receiving the acknowledgement, the published process normally allows 90 days to calculate and submit tax, interest and penalties. The disclosure includes a behaviour assessment and year-by-year calculations, so notification should not be treated as a substitute for reviewing the records and legal position.

The UK and India have an in-force Double Taxation Convention. Depending on the category of income or gain and the treaty article, Indian tax paid may support Foreign Tax Credit Relief against UK tax. Relief is not simply the foreign tax figure copied into a return: it depends on evidence, the relevant article, the UK liability and applicable limits.

We prepare the UK calculation and review the official UK–India treaty material. Where Indian tax filings, legal ownership or local treatment need advice, we coordinate with an authorised adviser in India rather than presenting UK accountancy work as Indian legal advice.

The correct period is not chosen only by how long the account or property existed. We check the UK residence position, filing and notification history, whether returns were inaccurate or missing, whether HMRC wrote first, and the behaviour that caused the omission. Recent years may require returns or amendments; older offshore liabilities may require the Worldwide Disclosure Facility. HMRC's WDF guidance requires the taxpayer to self-assess behaviour because it affects the years and penalties.

Useful evidence includes the full HMRC letter, NRO, NRE, FCNR and fixed-deposit statements, bank interest and TDS certificates, Indian income-tax returns, Form 26AS or AIS information, rental agreements and property accounts, purchase and sale documents, dividend and mutual-fund statements, pension records, ownership details, remittance history and prior UK returns. Figures are converted to sterling using an appropriate, consistent rate for the relevant transaction or tax year.