Indian mutual funds and UK taxation

23 November 2021 / Amit Puri

Issue: 4818 / Categories: Comment & Analysis

Little-known problem

Our widespread network of bookkeepers accountants and wealth managers consistently flag this common question: how are clients’ mutual fund investments taxed in the UK? While this article will focus on investments made into Indian mutual funds the principles apply to other mutual funds and non-UK/offshore funds more generally too.

Background

In an attempt to put the size of the mutual funds industry in India into context we ascertained that the assets under management (AUM) held there crossed 30tn Indian rupees (INR) for the first time in November 2020. By 30 September 2021 the industry had increased to INR36.74tn; that is about £350bn!

These figures come from the Association of Mutual Funds in India which is the official association of all the asset management companies of registered mutual funds in India incorporated in 1995 as a non-profit organisation. At the time of writing we...

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