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If a person is a UK resident, and has earned some income in India, he will be paying tax on that income in India , will they get relief for that tax payed in another country?
A UK resident is assessable on worldwide income so if he / she has has income from India then this will be included in the taxpayer’s UK Income Tax computation and will be charged to UK tax at the relevant UK rates. Double Taxation Relief (DTR) will then be deducted from the UK tax charge based on the lower of the overseas tax or the UK tax. This would mean that if the UK rate was 40% and the Indian tax was 25% the UK tax payable would effectively be the difference of 15% DTR however is not in the F6 syllabus, that pleasure awaits at P6 if you choose to do it!!
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