How to Transfer Large Sums From the UK to India Without Triggering Compliance Issues

You've saved £150,000 in the UK. Maybe it's from selling property, an inheritance, or years of hard work. 

Now you want to move it to India - perhaps for your parents' medical expenses, a property purchase, or to invest back home.

Then the worries begin. Will HMRC flag this? What if my Indian bank freezes the money? Do I need special certificates? Can I even send this much legally?

At Belong, we've helped hundreds of NRIs navigate cross-border money transfers through our WhatsApp community and app. 

The truth is: there are no legal limits on how much you can send from the UK to India. But there are rules. Break them unknowingly, and you'll face delays, frozen accounts, or worse - investigations.

This guide covers everything: UK regulations, Indian FEMA rules, Form 15CA/15CB requirements, DTAA tax benefits, and the exact documents you need. By the end, you'll know exactly how to move your money legally and smoothly.

👉 Quick Answer: There's no legal limit on UK-to-India transfers. Amounts over £10,000 typically trigger enhanced verification. With proper documentation, you can transfer millions legally.

What Actually Triggers Compliance Scrutiny?

Let's start with what you're really worried about: getting flagged. Both UK and Indian authorities monitor large transfers - not to stop you, but to prevent money laundering and tax evasion.

UK Side: HMRC and FCA Monitoring

The Financial Conduct Authority (FCA) regulates all UK money transfer providers. The Money Laundering Regulations 2017 require banks and transfer services to:

• Verify your identity (KYC checks)
• Collect sender and recipient details for transfers over €1,000
• Report suspicious transactions to the National Crime Agency
• Request source of funds documentation for large amounts

Key threshold: While there's no fixed amount that automatically triggers reporting, transfers over £10,000 are generally considered 'large' and more likely to require additional documentation. (Wise UK)

India Side: RBI and FEMA Regulations

India's Foreign Exchange Management Act (FEMA) governs all inward remittances. The good news: receiving money from abroad into India is relatively straightforward.

When you send money to India, your bank must:

• Issue a Foreign Inward Remittance Advice (FIRA)
• Report the transaction with the correct purpose code
• Comply with RBI's Authorised Dealer guidelines

👉 Tip: Keep your FIRA safe. You'll need it for tax filing and as proof of legitimate foreign remittance if questioned later.

Source of Funds: The Most Critical Document

This is where most compliance issues arise. Banks and transfer providers must verify that your money comes from legitimate sources - not crime, fraud, or tax evasion.

What Documents Do You Need?

The documentation depends on where your money came from:

👉 Pro Tip: Prepare your source of funds documents BEFORE initiating the transfer. This avoids delays when the bank requests them. Use Belong's Compliance Compass to check if you have everything in order.

How Much Can You Actually Transfer?

UK Outbound Limits

There is no legal limit on how much money you can send abroad from the UK. (GOV.UK) However:

• Individual banks set their own per-transaction limits (typically £25,000-£100,000)
• HSBC allows up to £10 million for Premier account holders
• Specialist transfer services like Wise and OFX often have higher limits than traditional banks

India Inbound Limits

India doesn't cap inward personal remittances. You can receive unlimited amounts into your NRE account or NRO account.

The limits you hear about (USD 250,000 under LRS, USD 1 million from NRO) apply to money going OUT of India, not coming in.

UK-India DTAA: Avoiding Double Taxation

One of the biggest fears NRIs have: "Will I pay tax twice - once in the UK and again in India?"

The answer is no - thanks to the Double Taxation Avoidance Agreement (DTAA) between India and the UK, signed in 1993 and still in force. (Income Tax India)

How DTAA Protects Your Money

The DTAA ensures you're not taxed twice on the same income. Here's how it works:

1. Tax Credit Method: If you pay tax on income in one country, you can claim a credit for that tax in the other country.

2. Reduced Withholding Rates: The treaty specifies maximum tax rates on dividends (15%), interest (15%), and royalties (15%).

3. Residence-Based Taxation: The treaty clarifies which country has taxing rights based on your residency status.

Tax Implications for Common Transfer Scenarios

For detailed guidance on claiming DTAA benefits, see our comprehensive guide on DTAA between India and UK.

Step-by-Step: How to Transfer Large Sums

Here's the exact process we recommend to clients:

Step 1: Gather Your Source of Funds Documents

Before you even contact a transfer provider, collect all documents proving where your money came from. This step alone prevents 80% of compliance delays.

Step 2: Determine Your Residential Status

Your tax obligations depend on your residential status in both countries. In India, you're an NRI if you've stayed less than 182 days in the financial year. Use our Residential Status Calculator to confirm your status.

Step 3: Choose Your Transfer Method

You have several options:

• Bank Wire Transfer: Most secure for large amounts. HSBC, Barclays, and Lloyds all offer international transfers, typically with limits of £25,000-£100,000 per transaction.

• Specialist Money Transfer Services: Wise, OFX, and CurrencyFair often offer better exchange rates than banks.

• Indian Bank UK Branches: ICICI, HDFC, and SBI have UK operations and may offer preferential rates for NRI account holders.

👉 Compare Rates: For large transfers, even a 0.5% difference in exchange rate can mean thousands of pounds. Use Belong's Rupee vs Dollar Tracker to time your transfer optimally.

Step 4: Provide Complete Information

When initiating the transfer, you'll need:

• Your valid government ID (passport or driving licence)
• Proof of UK address
• Recipient's full name and address in India
• Indian bank account details (account number, IFSC code)
• Purpose of transfer (family maintenance, property purchase, investment, etc.)
• Source of funds documentation

Step 5: Track and Document

Keep records of:

• Transfer confirmation and reference number
• Exchange rate applied
• Fees charged
• FIRA (Foreign Inward Remittance Advice) from the Indian bank

Form 15CA and 15CB: When Do You Need Them?

This is where many NRIs get confused. These forms are Indian Income Tax requirements - but they're primarily for outward remittances FROM India, not inward remittances TO India.

UK to India Transfer: Do You Need These Forms?

Generally, no. When you're sending money from the UK to India, you're the remitter, not the recipient of taxable income. Form 15CA/15CB is required when money leaves India, not when it enters.

When You WILL Need Form 15CA/15CB

You'll need these forms if you later want to repatriate money from India back to the UK:

• Form 15CA: An online declaration you file on the Income Tax portal stating the remittance details and tax compliance.

• Form 15CB: A certificate from a Chartered Accountant confirming that applicable taxes have been paid and the remittance complies with Indian tax laws.

Quick Reference: Which Part of Form 15CA?

For step-by-step guidance on filing these forms, see our guide on Filing Form 15CA and Form 15CB Online.

Which Indian Account Should Receive the Money?

As an NRI, you can receive foreign remittances in different types of NRI accounts:

NRE Account (Non-Resident External)

• Best for: Foreign earnings you want to keep fully repatriable
• Tax benefit: Interest earned is completely tax-free in India
• Repatriation: 100% freely repatriable - principal and interest
• Currency risk: Converted to INR, so exposed to rupee depreciation

Compare the best NRE savings accounts or explore NRE FD options.

NRO Account (Non-Resident Ordinary)

• Best for: Indian-sourced income (rent, dividends, pension)
• Tax: Interest is taxable; TDS deducted at 30% (plus surcharge)
• Repatriation: Capped at USD 1 million per financial year; requires Form 15CA/15CB
• Note: Foreign remittances CAN be credited here, though NRE is preferred

Learn about NRO account repatriation rules.

FCNR Account (Foreign Currency Non-Resident)

• Best for: Avoiding currency conversion; held in foreign currency (GBP, USD, EUR)
• Tax benefit: Interest is tax-free in India
• Repatriation: Fully repatriable
• Limitation: Only term deposits; cannot be used for day-to-day transactions

Understand the differences in our NRE vs NRO vs FCNR comparison.

👉 Our Recommendation: If you're sending money to India and may want to bring it back later, use an NRE account. For large amounts you want to protect from rupee depreciation, consider GIFT City USD Fixed Deposits - they offer tax-free returns in dollars. Compare rates using our NRI FD Comparison Tool.

Seven Mistakes That Trigger Compliance Problems

Based on cases we've seen, here are the most common errors:

1. Not Preparing Source of Funds Documents

The bank asks for proof, you scramble, the transfer gets delayed. Prepare everything before you start.

2. Sending from Third-Party Accounts

Money should come from an account in your name. If someone else sends money on your behalf, it raises red flags.

3. Splitting Transfers to Avoid Reporting

This is called 'structuring' and it's illegal. If you need to send £50,000, send £50,000 - don't split it into five £10,000 transfers.

4. Vague Purpose Descriptions

"Personal reasons" or "miscellaneous" invites questions. Be specific: "Family maintenance," "Property purchase in [city]," "Medical expenses for parents."

5. Not Declaring the Correct Residential Status

Your residential status affects which accounts you can use and your tax obligations. Get it right using our Residential Status Calculator.

6. Using Informal Channels

Hawala or unregulated money transfer services might seem convenient, but they're illegal and leave no paper trail. If questioned later, you'll have no proof of legitimate transfer.

7. Ignoring UK Exit Tax Implications

If you're leaving the UK permanently, certain assets may trigger capital gains tax. Consult a UK tax advisor before large transfers.

What If You're Sending Money to Family?

Many NRIs send money to parents, siblings, or other family members. Here's what you need to know:

Gifts to Relatives: Tax-Free in India

Under Section 56 of the Indian Income Tax Act, gifts received from relatives are completely exempt from tax - regardless of amount. 'Relative' includes: spouse, brother, sister, parents, grandparents, spouse's parents, and their lineal descendants.

Read our detailed guide on NRI Gift Tax in India.

Documentation for Family Transfers

Even for family gifts, document the relationship clearly:

• Written gift deed (simple letter stating the gift)
• Proof of relationship (if not obvious from names)
• Bank statements showing the transfer

⚠️ Warning: Gifts to non-relatives exceeding ₹50,000 per year are taxable in the recipient's hands. If you're sending money to a friend or distant relative, they may have to pay income tax on it.

Exchange Rate Strategy for Large Transfers

When you're moving £100,000+, even small rate differences matter enormously.

The Math That Matters

A 1% difference in exchange rate on £100,000 = £1,000 lost or saved.

Current GBP to INR rates fluctuate between 104-108. (XE.com) At £150,000:

• At 104: You get ₹1,56,00,000
• At 108: You get ₹1,62,00,000
• Difference: ₹6,00,000 (approximately £5,500)

Timing Strategies

1. Dollar Cost Averaging: Split large transfers over 3-6 months to average out rate fluctuations.

2. Rate Alerts: Set up alerts with your transfer provider for target rates.

3. Forward Contracts: Some services let you lock in today's rate for future transfers.

Track trends using our Rupee vs Dollar Tracker.

Transferring Property Sale Proceeds

If you've sold UK property and want to bring the proceeds to India, additional considerations apply.

UK Capital Gains Tax

If you sold a property that isn't your primary residence, you'll likely owe UK Capital Gains Tax. This must be reported to HMRC within 60 days of completion.

Documentation Needed

• Signed sale agreement
• Solicitor's completion statement
• Land Registry extract
• Bank statements showing receipt
• CGT calculation and payment proof (if applicable)

Investment Options in India

Once the funds reach India, consider:

• NRI Fixed Deposits for safety
• GIFT City investments for tax-free USD returns
• Mutual funds for growth
• Real estate if you're planning to return

Your Next Steps

Moving large sums from the UK to India isn't complicated - it just requires preparation. Here's your action plan:

1. Confirm your residential status using our calculator

2. Gather source of funds documentation based on the table above

3. Compare transfer options and exchange rates

4. Choose the right receiving account (NRE, NRO, or FCNR)

5. Keep complete records of every transaction

If you're planning to keep your money invested in India, consider GIFT City investments - they offer tax-free returns in USD, protecting you from both Indian taxation and rupee depreciation.

Have questions about your specific situation? Join our WhatsApp community where NRIs share experiences and get answers from our team. Or download the Belong app to access all our calculators, comparison tools, and expert guidance - built specifically for global Indians like you.

Sources

• UK Financial Conduct Authority (FCA) - fca.org.uk
• HMRC Guidance on Remittance Basis - gov.uk
• Reserve Bank of India FEMA Guidelines - rbi.org.in
• India-UK DTAA Text - incometaxindia.gov.in
• Income Tax Department Form 15CA/15CB - incometax.gov.in
• Money Laundering Regulations 2017 - legislation.gov.uk
• Wise UK Transfer Guide - wise.com
• Western Union UK Regulations - westernunion.com