🇬🇧 India–United Kingdom DTAA
India–United Kingdom tax treaty
Signed 1993 · notified 1994. A practitioner's reference, not legal advice — confirm positions against current text and protocols before acting.
Highlights
- ·Updated by 2013 protocol
- ·Beneficial for Indian IT services and UK pension recipients
- ·MLI-modified — PPT test applies
Withholding rates
| Income | Treaty rate | Domestic rate | Note |
|---|---|---|---|
| Dividends | 10% / 15% | 20% | — |
| Interest | 10% / 15% | 20% | — |
| Royalties / FTS | 10% / 15% | 10% | — |
| Capital gains (immovable) | Source state | 12.5% LTCG | — |
Treaty rate available only on furnishing TRC, Form 10F and beneficial-owner declaration. PPT / GAAR / LOB tests may further restrict access.
Permanent establishment
Fixed place, building site (> 6 months), services PE (> 90 days).
Residency tie-breaker
Standard OECD-model tie-breaker (home → COVI → habitual abode → nationality).
FTC mechanism
India: Form 67 + Rule 128. UK: foreign tax credit relief.
Common use cases
- ✓UK pension (state / private) received in India — taxable in India per Art 19
- ✓Indian companies seconding employees to UK — short-stay exemption (Art 16)
- ✓UK landlords with property in India — rental income taxable in India
Pitfalls we see
- !PPT may deny benefit if structure has no commercial substance
- !Indian resident with UK ISA — exempt in UK but taxable in India
Have an India–United Kingdom fact pattern?
We give a one-page written position with treaty cites and FTC computation, usually within 3 working days.
Request a written position