Foreign direct investment in India & Tax Collections in UK

January 26, 2021

Foreign direct investment or FDI is one of the most important sources of non-debt finance and a major factor in the economic development of any country. According to the World Investment Report, 2020 of the United Nations Conference on Trade and Development (UNCTAD), India jumped from 12th spot in 2018 to 9th spot in 2019 on the list of global top 20 recipients of FDI. FDI inflows into India increased from US$ 44 billion in 2018 to US$ 51 billion in 2019 putting India among the top 10 recipients of FDI in the world.

The numbers coming in from the UK are equally incredible, however, they’re for all the wrong reasons. While overall tax income is down 28%, sales tax (VAT) is down 46%, and employment taxes are down 29%. Government debt levels have exploded to above 101% and expected to reach 120% by next year. If you’re an NRI in the UK and are planning to retire in India, bringing your pension along with you is the best decision you could make.

How do I transfer my pension from the UK to India and will I incur any penalties?

Transferring your pension fund from the UK to India through QROPS approved schemes is penalty-free and tax-free.

What is QROPS?

QROPS stands for Qualifying Recognised Overseas Pension Scheme and refers to all overseas pension schemes that meet the stringent guidelines and parameters set by Her Majesty’s Revenue and Customs (HMRC). UK Pension funds can be transferred to India via a QROPS without incurring any penalties or charges, as long as the Indian scheme maintains compliance with HMRC. An important fact to remember is that while a lot of schemes claim to be compliant and feature on the HMRC official site, not all of them are, and HMRC does not take responsibility for verifying if schemes are actually compliant.

How do I know if I’m eligible?

If your pension belongs to the following categories, you are eligible to transfer your pension fund to India through QROPS:

  1. Occupational
  2. Final salary
  3. Defined benefit
  4. Defined contribution
  5. Self-invested personal pension (SIPP)
  6. Small self-administered scheme (SSAS)

How do I know which schemes are HMRC compliant?

Mr. J Noble Yuvaraj and his team of financial experts are well versed with HMRC compliance and even provide training to a number of private Life Insurers on the subject. Please contact us to find the best compliant plan for you based on your age, vesting age, and risk profile.

Mobile : 0091 9962170707 / Landline : 0091 044 42317070

Email :

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