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As Indian wealth continues to expand globally, high-net-worth individuals (HNIs) are seeking jurisdictions that offer long-term security, diversified investment opportunities, and family legacy solutions.
The United Kingdom, long regarded as a global financial and wealth management hub and a second home for many Indian HNIs, continues to attract Indian families looking for credible and structured platforms for international exposure.
However, recent tax reforms and geopolitical shifts have reshaped the landscape, requiring investors to be more nuanced and well-advised in their approach.
One of the most significant changes impacting global families is the recent UK’s reform of its tax regime for non-domiciled individuals.
Effective April 6, 2025, the UK has replaced its long-standing “non-dom” system with a new Foreign Income and Gains (FIG) regime.
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Under this new framework, newly arrived UK residents will be exempted from UK tax on foreign income and gains for only four years, after which their worldwide income will become taxable—regardless of whether it is remitted to the UK.This is a sharp departure from the earlier remittance-based regime, where non-doms could defer UK taxation for up to 14 years.For Indian families evaluating residency, investment migration, or business expansion to the UK, this change introduces new tax implications that must be weighed carefully.
Despite the shift, the UK remains an important wealth gateway—strengthened by recent geopolitical and economic developments.
Most notably, the UK-India Free Trade Agreement (FTA) was officially concluded on May 6, 2025, after nearly three years of negotiations. This landmark deal is expected to increase bilateral trade by £25.5 billion annually between the two countries.
India will gain from tariff elimination on about 99% of the tariff lines covering almost 100% of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK. While it will help raise the UK’s GDP by £4.8 billion.
For Indian HNIs and family businesses, the FTA paves the way for enhanced market access, cross-border investments, lifestyle mobility, and strategic partnerships.
It also opens opportunities in sectors such as technology, healthcare, financial services, professional services and real estate—all of which have historically been preferred by Indian investors.
From a regulatory and structuring perspective, India’s evolving capital control regime further facilitates global wealth participation.
With the Liberalised Remittance Scheme (LRS) allowing up to USD 250,000 per individual every financial year and updated Overseas Investment Laws, enabling Overseas Direct Investments (ODI) and Overseas Portfolio Investments (OPI) by Indian entities , Indian residents are now well-positioned to establish legitimate and tax-compliant global holdings whether for business or investments goals.
The GIFT City, India’s first International Financial Services Centre (IFSC) has emerged as a complementary hub—offering zero capital gains tax (for eligible investors), no stamp duty, and access to global markets through IFSC registered structures. It now acts as a regulatory bridge, enabling seamless investment into jurisdictions like the UK.
As global wealth flows become more complex and interconnected, the UK continues to offer Indian HNIs a robust, opportunity-rich platform—albeit with new considerations.
With the right planning partner, Indian families can unlock these benefits with clarity, compliance, and strategic foresight.
(The author is Managing Director – Wealth Planning & Family Solutions, LGT Wealth India)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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