Britain’s Tax Exemption Cut Prompts 50,000 NRIs to Shift to Dubai

Now, NRIs will have to pay tax on income earned in India.

British PM Rishi Sunak has proposed another tough law. Non-resident Indians (NRIs) residing in Britain will now have to pay taxes on their income from Indian banks, stock markets, and rent for a period of 4 years, reduced from the previous 15 years. Until now, NRIs were only required to pay tax on income received in Britain for up to 15 years.

The new law will come into effect from April next year. London tax consultant Saurabh Jetley has stated that after the new rules, nearly 50,000 NRIs with an annual income of around five lakh pounds are considering shifting to Dubai. Personal taxation in Dubai is zero, and corporate tax is only 9%. In contrast, estate tax in London is also 40%, whereas there is zero estate tax on NRIs in Dubai. Jetley’s statements indicate a shift in sentiment among NRIs towards doing business in Britain after Sunak’s new law.

Here, 83,468 Indians have taken citizenship.

In the last five years, 83,468 Indians have renounced Indian citizenship and acquired British citizenship. This is the highest in any European country. Earlier, until 2022, 254 affluent Indians had acquired British citizenship under the Golden Visa scheme.