NRIWallah team
Updated September 2026
Moving to the UK puts you under two tax systems at once. Your salary is taxed in Britain, your Indian income is taxed in India, and your Indian bank accounts have to change the day you become an NRI. This page gathers what matters at each stage.
Your first few weeks
Get a UK bank account first, because your salary and your rent depend on it. Monzo and Starling open in their apps with your passport and a temporary UK address; high-street banks usually want proof of address first. Our NRI banking guide compares the options.
In India, tell your bank you have moved. Your resident savings account has to become an NRO account under FEMA, and money you send home from now on belongs in an NRE account, where the interest is free of Indian tax.
Before your first transfer home, compare what providers actually charge on our INR converter . The exchange-rate margin usually costs more than the fee.
Tax in two countries
The UK tax year runs from 6 April to 5 April, India’s from 1 April to 31 March. If you are UK resident, Britain taxes your worldwide income, which includes rent from a flat in India and interest on Indian deposits. NRE interest is tax-free in India but still has to be declared on a UK return.
The India-UK tax treaty stops the same income being taxed twice: tax paid in India is credited against the UK bill. Our UK tax calculator estimates that relief, and the UK residence test tells you whether you are UK resident in a given year.
Once you are settled
- Saving and investing. An ISA lets you invest up to £20,000 a year (2026-27) free of UK tax. Our investment guide covers ISAs and pensions alongside Indian investments.
- Buying a home. NRIs can get UK mortgages, including buy-to-let, though lenders look closely at visa type and UK credit history. See mortgage options .
- Family protection. A UK will names guardians for your children, and a separate Indian will covers Indian assets. Our wills guide explains why you usually need both.
- State pension. You need at least 10 qualifying years of National Insurance to get any UK state pension, and 35 for the full amount.
Saving money in the UK
A handful of UK rules save money every year rather than once. Figures are as of September 2026.
- TV licence. You need one, at £180 a year from April 2026, only if you watch or record live TV on any channel or service, or use BBC iPlayer. If you only stream on-demand from other services, you do not, and you can tell TV Licensing so. The checker below the article works it out.
- Council tax. If you are the only adult counted in your home, your bill drops by 25%. Some adults are disregarded, including full-time students, so sharing with a student can still qualify. Apply to your local council.
- Cards on trips home. Most high-street debit cards add a fee to every payment made abroad. Several app-based banks, Starling among them, charge none, so carry one in India, and pay in rupees when a card machine offers pounds.
- Deposit protection. The FSCS protects up to £120,000 per person per banking licence, up from £85,000 in December 2025. Some brands share a licence, so if a large sum lands at once, such as the proceeds of selling a flat in India, spread it across separate banking groups.
- Immigration Health Surcharge. £1,035 a year for each adult and £776 for students and children, paid upfront for the whole visa. It was left unchanged in the April 2026 fee round.
- Your ISA when you leave. An ISA stays open and tax-free in the UK after you become non-resident; you just cannot pay in until you return. Closing it gives up allowances you cannot get back.
- State pension top-ups. From April 2026 you can no longer pay the cheaper voluntary Class 2 contributions from abroad. Class 3 costs £18.40 a week in 2026-27, and new applicants living abroad need ten years of UK residence or contributions. Check your National Insurance record before you leave.
- Student loans. If you move abroad for more than three months, tell the Student Loans Company. Repayments are then based on a threshold set for the country you live in, and if you do not send your income details, it charges fixed monthly repayments instead.
Moving back to India
Leaving the UK does not end every tie at once. Inheritance tax can follow long-term residents for years after departure, and your residency status in India changes in stages. Our guide to moving back to India covers both sides.
