Tag: tax on foreign income

When a taxpayer earns income abroad and pays tax in a foreign country, FTC allows him to claim credit for this tax against the liability in his home country. This mechanism ensures that the same income is not taxed twice: once where it is earned and, again, where the taxpayer resides.

If you are a UK resident and have a domicile in India, you will now have to pay tax on your foreign income. The UK has brought in new tax rules from April 6, 2025, changing how foreign income is treated for residents with overseas ties. The previous system that allowed UK residents to avoid tax on foreign income under the remittance basis has ended.