How do I invest in an Indian mutual fund?

dunstonh

Are you UK resident?

Cook_County

If you are resident and domiciled in the UK then whether or not you brought the proceeds to the UK is irrelevant. The gains are reportable as offshore income gains your UK tax return.

If you not UK domiciled then you'd have to formally claim the remittance basis.

gt94sss2

You can directly trade Indian shares from the UK via ICICI and HSBC among others (perhaps also Citi) - however, I believe you probably have to be either a 'Non Resident Indian' (i.e. an Indian living abroad) or a person of Indian origin (i.e. at least one of your parents/grandparents was Indian) due to Indian government rules.

You may have to search for the term 'Demat account' (demat = dematerialised.. i.e. a nominee acccount) on the relevant websites..

Regards
Sunil

capstain411

Cook_County wrote: »

If you are resident and domiciled in the UK then whether or not you brought the proceeds to the UK is irrelevant. The gains are reportable as offshore income gains your UK tax return.

If you not UK domiciled then you'd have to formally claim the remittance basis.

what do u exactly mean by UK domicile. I am Indian based in UK since last 6 years. My parents are based in India.

I did not quite understand the second part of your post of claiming on remittance basis.

Cook_County

Given that your domicil of origin is outside of the UK there is no UK tax on income or gains arising outside of the UK unless brought to (remitted to) the UK.

To get this preferential UK treatment, you need however to file a UK tax return each year claiming to be non-UK domiciled and that you do not remit such income or gains to the UK.

capstain411

I work for NHS. My tax gets deducted at source. When should I file this UK tax return.

I am investing heavily, in tune of 750 pounds every month with the intention of principal amount growth and remitting it back to UK when I want to buy a property here ( at the moment a small chunk is going towards monthly repayments of my Indian housing loan).

I think, I have committed a huge oversight (taxation in UK). For next 2 years I have no need to remit the money back. But eventually, I will have to get some of the money back here.

Is there any legal way to do it ( obviously not having a massive tax deduction) I would not mind losing a decent amount to get the money back to UK.

I perhaps will have to reconsider my monthly investment plan......

Sapphire

capstain411 wrote: »

I work for NHS. My tax gets deducted at source. When should I file this UK tax return.

I am investing heavily, in tune of 750 pounds every month with the intention of principal amount growth and remitting it back to UK when I want to buy a property here ( at the moment a small chunk is going towards monthly repayments of my Indian housing loan).

I think, I have committed a huge oversight (taxation in UK). For next 2 years I have no need to remit the money back. But eventually, I will have to get some of the money back here.

Is there any legal way to do it ( obviously not having a massive tax deduction) I would not mind losing a decent amount to get the money back to UK.

I perhaps will have to reconsider my monthly investment plan......

I think that it may be useful for you to speak to a good accountant, who can advise you on the tax position (probably better and more reliably than most people on these boards).

dunstonh

The taxation issue is because of the type of investment being considered. If UK authorised funds were being used then it wouldnt be an issue and no tax return would be required (assuming basic rate taxpayer not moving into higher rate).