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28 February 2012
Issue: 4343 / Categories: Forum & Feedback , Residence & domicile
A client was born in Uganda, but his parents were born in India. His wife was born in India and they now both live in the UK

My client has been living in the UK for the past 40 years but he was born in Uganda and his parents were born in India.

My client’s wife was also born in India and has been living here for the past 20 years. Claims were made that they were both non-UK domiciled.

This was queried by HMRC but after completion of forms Dom1 the department accepted their Indian domicile status. I would very much appreciate readers’ thoughts on the questions below.

First my client has Indian rupee deposits in India. Under the double taxation treaties what rate of tax should be deducted in India and will he receive full tax credit in the UK for the tax deducted in India?

Second how does tax-sparing relief work for UK residents on interest income arising in India?

Finally it seems highly likely that my...

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