Since April 2025, everything changed for UK-based NRIs. The remittance basis rules ended. Your worldwide income - including Indian investments - is now taxable in the UK regardless of whether you bring it home.
In our NRI WhatsApp community, we've seen a 3X spike in questions from British Indians asking the same thing: "Does GIFT City still make sense for me?"
The short answer? Yes - but only if you do it right. This checklist covers every document, every step, and every timeline you need to start investing in GIFT City from the UK.
No surprises. No wasted trips to the bank. Just a clear path from where you are to where you want to be.
Why UK NRIs Are Looking at GIFT City Right Now
The non-dom tax regime ended in April 2025. If you're a UK tax resident, your global income is now taxable on an arising basis - even if you never remit it to the UK.
This creates a new calculation. Traditional Indian investments (NRE FDs, mutual funds, equity) now face:
- 20-30% TDS in India
- UK tax on the same income
- Double Taxation Avoidance Agreement (DTAA) credits to manage
GIFT City changes this equation. Interest from GIFT City deposits is tax-free in India - zero TDS. Under the India-UK DTAA, you can claim a notional 15% tax credit in the UK even though India didn't tax you. This "tax sparing" provision effectively reduces your UK tax burden.
👉 Tip: The tax sparing relief under Article 24(5) of India-UK DTAA is unique. Consult a UK tax advisor familiar with Indian investments before proceeding.
Your Document Checklist: What You'll Actually Need
Before contacting any bank, gather these documents. Missing even one can delay your account by 2-3 weeks.
Essential Documents (Required by All Banks)
Document | Requirement | Notes |
|---|---|---|
Valid Passport | Minimum 6 months validity | Both Indian and UK passports if dual national |
UK Visa/BRP | Current residence proof | Work visa, ILR, or settled status document |
PAN Card | Indian Permanent Account Number | Apply online if you don't have one |
UK Address Proof | Utility bill or bank statement | Must be dated within last 3 months |
Passport-sized Photos | 2-4 copies | White background, recent |
Additional Documents (Bank-Specific)
Document | When Required |
|---|---|
Tax Residency Certificate (TRC) | For claiming DTAA benefits - get from HMRC |
Form 10F | Filed with Indian income tax portal |
Employment/Income Proof | For some AIFs and PMS products |
FATCA/CRS Self-Declaration | Standard compliance requirement |
Good news: NRIs don't need Aadhaar to open GIFT City accounts. Your passport and overseas ID are sufficient.
👉 Tip: Get your TRC from HMRC before you start. It takes 2-3 weeks and you'll need it for DTAA benefits.
Step-by-Step: Opening Your GIFT City Account from the UK
Step 1: Confirm Your NRI Status
You qualify as an NRI if you've lived outside India for more than 182 days in a financial year for employment or business. Use our Residential Status Calculator to confirm.
Your NRI status determines which accounts you can open and how your investments are taxed.
Step 2: Choose Your GIFT City Bank
Major banks operating IBUs (IFSC Banking Units) in GIFT City include:
- ICICI Bank IBU
- HDFC Bank IBU
- SBI IBU
- Axis Bank IBU
- Yes Bank IBU
- Federal Bank IBU
Each offers different interest rates on USD/GBP fixed deposits. Compare before committing.
Step 3: Complete KYC
Here's where it gets practical. You have three options:
Option A: Video KYC (Fastest)
IFSCA introduced video KYC for NRIs in 2025. If available with your bank:
- Schedule a video call
- Keep passport, visa, and address proof ready
- The representative verifies documents and performs liveness checks
- Account opens in 3-5 business days
Option B: In-Person Verification in India
If you're visiting India:
- Visit the bank's IBU branch in GIFT City or their designated branch
- Complete verification on the spot
- Account active within 24-48 hours
Option C: Notarized Documents from UK
If video KYC isn't available and you can't visit India:
- Get your documents attested by a notary or the Indian High Commission in London
- Ship to the bank's designated address
- Processing takes 2-3 weeks after receipt
👉 Tip: Call your chosen bank's NRI helpdesk before starting. Ask specifically: "Do you offer video KYC for UK-based NRIs?" This saves weeks of confusion.
Step 4: Fund Your Account
Once your GIFT City account is active:
- Wire GBP or USD directly from your UK bank via SWIFT
- No conversion to INR required
- Funds typically arrive in 2-3 business days
- Minimum deposit varies by bank (usually $1,000-$10,000)
Step 5: Choose Your Investment
Your options include:
Fixed Deposits – Safest choice. USD FDs offering 4-5% annually, tax-free in India. Tenures from 7 days to 39 months.
Alternative Investment Funds (AIFs) – For higher returns. Minimum dropped to USD 75,000 in February 2025. Explore options via our GIFT City AIFs tool.
Mutual Funds – Some GIFT City funds now accept as low as USD 500. Check our guide on GIFT City mutual funds for UK NRIs.
Portfolio Management Services – For amounts above USD 150,000. Professional management with personalized strategies.
Timeline: How Long Does This Actually Take?
Stage | Timeline |
|---|---|
Document gathering | 1-2 weeks (including TRC from HMRC) |
Bank application submission | 1 day |
KYC verification (video) | 3-5 business days |
KYC verification (notarized docs) | 2-3 weeks |
Account activation | 1-2 business days post-KYC |
SWIFT transfer | 2-3 business days |
FD booking | Same day once funds arrive |
Best case: 2 weeks from start to invested Realistic case: 3-4 weeks Worst case (document issues): 6-8 weeks
UK Tax Implications: What Changed in 2025
The April 2025 non-dom changes mean you can no longer avoid UK tax by not remitting Indian income. Here's how GIFT City investments are treated:
Interest Income from GIFT City FDs
In India: Tax-free. No TDS. No filing required for this income alone.
In the UK: Taxable as foreign interest income. But here's the advantage - the India-UK DTAA provides tax sparing relief. HMRC allows a notional 15% tax credit even though India charged zero tax.
Example: You earn £1,000 interest from GIFT City FD
- Indian tax: £0
- UK tax (40% higher rate): £400
- Tax sparing credit: £150
- Net UK tax: £250
Compare this to NRO FD interest where you'd pay 30% TDS in India plus UK tax (minus DTAA credit). GIFT City is more efficient.
Capital Gains from GIFT City Investments
In India: Capital gains from specified securities traded on IFSC exchanges are tax-exempt for NRIs.
In the UK: Taxable at 18% (basic rate) or 24% (higher rate) in 2025-26. You can offset any Indian tax paid as Foreign Tax Credit.
Reporting Requirements
As a UK tax resident with foreign assets exceeding £100,000, you must declare them in your Self Assessment tax return.
👉 Tip: GIFT City investments are NOT held in ISAs or SIPPs. They don't get UK tax-free treatment. Factor this into your overall tax planning.
DTAA Documents: Your Compliance Checklist
To claim India-UK DTAA benefits, submit these annually:
Document | Where to Get | Submit To |
|---|---|---|
Tax Residency Certificate (TRC) | HMRC (Form DT-Individual) | Your Indian bank/broker |
Form 10F | Indian income tax portal | File online |
Self-Declaration | Bank provides format | Your Indian bank |
PAN Card Copy | Already have | Your Indian bank |
Without TRC and Form 10F, you may face higher TDS rates on other Indian investments.
Common Mistakes UK NRIs Make
After helping hundreds of UK-based NRIs, we see the same errors repeatedly:
1. Starting without TRC
The HMRC Tax Residency Certificate takes 2-3 weeks. Don't wait until you need it urgently.
2. Using wrong documents for address proof
UK banks statements work. But ensure they show your name AND address. Online-only statements are often rejected - request a posted statement if needed.
3. Forgetting to update residential status with existing Indian banks
If you have existing NRE/NRO accounts, inform them of your UK residency. This affects TDS rates and DTAA eligibility.
4. Not planning for repatriation
GIFT City funds are fully repatriable. But you'll need to comply with FEMA guidelines and potentially file Form 15CA/15CB for large transfers.
5. Ignoring annual compliance
Each year, renew your TRC, file Form 10F, and submit fresh self-declarations to maintain DTAA benefits.
GIFT City vs Traditional UK Investment Options
Feature | GIFT City FD | UK Cash ISA | UK Investment Bond |
|---|---|---|---|
Currency | USD/GBP/EUR | GBP | GBP |
Interest rate | 4-5% | 4-5% | Variable |
Tax in source country | 0% (India) | 0% (UK ISA wrapper) | Depends on wrapper |
Tax in UK | Taxable (minus 15% sparing credit) | Tax-free | Depends on structure |
Access to Indian growth | Yes (via AIFs) | No | Possibly (via underlying funds) |
Repatriation flexibility | Full | N/A | N/A |
GIFT City works best as a complement to UK tax wrappers - not a replacement. Use ISAs for UK tax efficiency, GIFT City for India exposure and currency diversification.
When GIFT City Doesn't Make Sense for UK NRIs
Be honest with yourself. GIFT City may not suit you if:
- You have no intention of ever moving funds to or from India
- Your investment horizon is under 3 years
- You're uncomfortable with GBP/INR currency movements
- You don't want to manage annual DTAA compliance
- Your total investment amount is under £5,000 (administrative costs may outweigh benefits)
For small amounts, consider UK-based India ETFs instead. They're simpler and sit within your existing investment accounts.
Your Next Step
We've covered everything - documents, process, timelines, and UK tax implications. Now it's about execution.
Start by checking current GIFT City FD rates across banks. Then use our Compliance Compass to ensure you're meeting all regulatory requirements.
Questions? Join our WhatsApp community where we discuss UK-specific GIFT City queries daily. Or download the Belong app to compare rates and start your application.
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