Red Sandalwood Investment for NRIs in United Kingdom

Quick answerUK-based NRIs and OCIs weigh India’s FEMA restriction alongside UK tax-residence rules and the India to UK double-taxation treaty. Note the UK’s treatment of foreign income and gains changed in 2025, so the current position should be confirmed with a UK adviser rather than assumed. The UK has one of the oldest and largest Indian diaspora communities, with deep, multi-generational ties to India. This page is general orientation for UK-based NRIs & OCIs, not legal or tax advice, every NRI engagement here begins with a consultation and independent FEMA and tax counsel.

Read this first: Under FEMA, NRIs and OCIs are generally not permitted to directly purchase agricultural land in India. Any compliant pathway depends on your individual circumstances and must be reviewed with independent counsel. Everything below is general orientation, not advice.

Your UK tax layer

UK tax residence is determined by the Statutory Residence Test; residents are generally taxed on worldwide income.
The UK’s rules for taxing foreign income and gains were reformed in 2025, the old remittance-basis/non-dom regime no longer applies as it did, so confirm your current position.
The India to UK DTAA can relieve double taxation on Indian-source income.

Your India tax layer

Indian-source income (harvest/sale proceeds) is taxable in India, with TDS commonly deducted for NRIs.
The India to UK treaty coordinates taxing rights to avoid full double taxation.

Repatriation, moving proceeds home

Indian receipts route through your NRO account; NRE balances are freely repatriable.
Up to USD 1 million per financial year may generally be remitted from NRO balances.
Form 15CA and a CA’s Form 15CB support the remittance.

See repatriation & FEMA for the full mechanics.

What you report in the UK

Report foreign income on your UK Self Assessment where you are UK-resident and it is taxable.
Keep records of Indian tax paid to claim treaty relief.
Confirm post-2025 foreign-income rules with a UK tax adviser.

How we handle NRI investment

We require an NRI consultation before any commitment, review your situation against FEMA’s restrictions, and, where a compliant structure genuinely fits, document it properly. Where it does not fit, we say so. Start with how NRIs can invest.

Common questions from UK-based NRIs & OCIs

Can a UK-based NRI or OCI buy agricultural land in India?

Generally no, FEMA does not permit direct purchase of Indian agricultural land by NRIs/OCIs. Compliant pathways depend on your circumstances and need independent advice.

How does the India to UK tax treaty help?

The DTAA coordinates taxing rights and can provide relief (typically a credit for Indian tax paid) so the same income is not fully taxed twice. Confirm specifics with a UK adviser.

Do I report Indian farmland income to HMRC?

If you are UK-resident and the income is taxable, you generally report it on Self Assessment. The 2025 changes to foreign-income rules mean you should confirm your current position with an adviser.

Your next steps

Confirm your FEMA eligibility with independent counsel.
Check your UK residence position and the post-2025 foreign-income rules with a UK adviser.
Book our NRI consultation to review the India side.

NRI in United Kingdom and considering this?

Start with the consultation, it exists to keep you compliant, not to sell you.

Book NRI Consultation