GIFT City Funds for UK NRIs: Reporting Fund Status, Tax and How to Invest (2026)
By Anup Vatyani, AMFI-registered Mutual Fund Distributor (ARN 106715)
Last reviewed October 2026
The short answer. UK-resident NRIs can invest in GIFT City funds in US Dollars from a UK bank account, with no LRS or TCS. The question that decides your UK tax is the fund's HMRC reporting fund status: without it, gains are normally taxed as income at your marginal rate rather than as capital gains. Ask the fund house before you invest.
UK NRIs and GIFT City: key facts
| Currency | Pound sterling; most GIFT City funds are in USD, so you carry USD/GBP risk |
|---|---|
| UK tax on your investment | Yes, on worldwide income and gains for UK residents (subject to the FIG regime) |
| Tax treaty with India | Yes |
| LRS or TCS? | No. Those apply only to resident Indians. |
| Main thing to check | Whether the fund has UK reporting fund status |
| ISA or SIPP? | GIFT City funds are not usually ISA- or SIPP-eligible |
How to invest in GIFT City from the UK
- 1
Choose a fund
Inbound (India) or outbound (global)
- 2
Ask about reporting status
And UK eligibility
- 3
KYC with the fund house
Passport, UK address proof
- 4
Transfer USD from the UK
Or GBP converted
- 5
Keep records for HMRC
Cost and dates in GBP
Which GIFT City funds accept NRIs in the UK?
Based on each fund house's published eligibility, checked 24 October 2026. Offer documents can add conditions, and most exclude sanctioned or FATF-listed countries, so confirm with the fund house before you apply. Listing is not a recommendation.
HDFC's inbound GIFT City funds state that their lower-minimum Class AR units are not available to UK investors; the Class A minimum is above USD 150,000.
Lower minimums (USD 500 to USD 10,000)
- ABSL India Growth Fund (Aditya Birla Sun Life, inbound): USD 500, then multiples of USD 100.
- Edelweiss Greater China Equity Fund (Edelweiss, outbound): USD 5,000; top-ups USD 500.
- Edelweiss US Technology Equity Fund (Edelweiss, outbound): USD 5,000; top-ups USD 500.
- Marcellus Global Equities Fund (Marcellus, outbound): USD 5,000; top-ups USD 2,000.
- Parag Parikh India Flexi Cap Fund (listed as coming soon) (PPFAS (Parag Parikh), inbound): USD 10,000; top-ups USD 1,000.
- Sundaram India Mid Cap GIFT (Sundaram, inbound): USD 5,000.
- Tata India Dynamic Equity Fund (Tata, inbound): USD 500.
AIFs and restricted funds (higher minimums)
- Bandhan India Large and Mid-cap Fund, India Small Cap Fund and India Government Securities Fund (IFSC) (Bandhan): Not published; ask the fund house.
- HDFC India Flexi Cap, Balanced Advantage, Midcap Opportunities, Small Cap, NIFTY 50 and Diversified Equity FOF (HDFC): Above USD 150,000 (Class A) or above USD 50,000 (Class AR, not for US or UK investors).
- Mirae Asset Global Advantage Fund (Mirae Asset): USD 151,000; USD 25,000 for accredited investors.
- Motilal Oswal GIFT City India Equity Fund of Funds (Motilal Oswal): USD 150,000.
- Nippon India Large Cap Fund GIFT (Nippon India): USD 150,000.
- Phillip India Billion Opportunities Fund (Phillip Capital): Not published; ask the manager.
- The Wealth Company IFSC FoF (The Wealth Company): Not published; ask the fund house.
- Rangoli India Fund (Unifi Capital): Not published; ask the manager.
Full details, minimums and sources: GIFT City fund list.
How UK taxes GIFT City funds
GIFT City funds are offshore funds for UK tax. HMRC's offshore fund rules split them into two groups:
| Reporting fund | Non-reporting fund | |
|---|---|---|
| Gain on sale | Capital gain: 18% or 24% for individuals in 2026-27, after the £3,000 annual exempt amount | Offshore income gain, taxed as income at your marginal rate |
| Income while you hold | Your share of reported income is taxable each year, even if not paid out | Distributions taxable when paid |
| What to ask the fund | Does the scheme have, or will it apply for, UK reporting fund status? | |
The 4-year FIG regime
From 6 April 2025, the UK replaced the remittance basis with the 4-year foreign income and gains (FIG) regime. People arriving in the UK after at least ten consecutive years of non-residence can claim relief on eligible foreign income and gains for their first four tax years. Others are taxed on worldwide income and gains.
- India and the UK have a tax treaty; any Indian tax can usually be credited against UK tax on the same income.
- Keep cost, dates and exchange rates in sterling for each purchase and sale.
Indian tax for NRIs in the UK
Many GIFT City funds are structured so that non-resident investors bear little or no Indian tax, with tax handled at the fund level; the treatment depends on the fund, so ask for it in writing. Your Indian residential status decides the rest: you are generally non-resident if you spend fewer than 182 days in India in the financial year, but a 120-day test applies if your Indian income exceeds ₹15 lakh. See GIFT City taxation.
Documents NRIs in the UK are usually asked for
- Passport (and OCI card if you are a British citizen of Indian origin)
- UK address proof, such as a council tax bill or bank statement
- PAN, if you have one
- UK National Insurance number or tax reference, for CRS self-certification
- FATCA and CRS self-certification
Build your own list with the document checklist.
Sending money from the UK
Transfer US Dollars from a UK bank or currency account to the fund's subscription account, or convert sterling through your bank or a regulated currency provider. Your return in sterling depends on the fund's markets and on USD/GBP, and for inbound funds also on the rupee. Redemptions come back in US Dollars. If you might move back to India, read moving country with GIFT City investments.
Other countries
Guides for the UAE, the UK, the US, Singapore and Canada, and the Gulf and Australia on the main GIFT City for NRIs page.
Common questions
How are GIFT City funds taxed in the UK?
As offshore funds. If the fund has HMRC reporting fund status, gains are normally capital gains (18% or 24% in 2026-27 after the £3,000 allowance) and reported income is taxed yearly. Without it, gains are normally offshore income gains, taxed as income at your marginal rate.
Do GIFT City funds have UK reporting fund status?
It varies by fund, and many new funds do not. Ask the fund house whether the scheme has, or will apply for, reporting fund status before you invest, because it changes how your gains are taxed.
Can UK residents invest in GIFT City funds?
Yes, in funds that accept UK residents. Most NRI funds on our list do; HDFC's inbound funds state that their lower-minimum Class AR units are not available to UK investors. Confirm eligibility in the offer document.
Does the FIG regime apply to GIFT City funds?
It can. Since 6 April 2025, people who arrive in the UK after at least ten years of non-residence can claim relief on eligible foreign income and gains for four tax years. After that, or if you do not qualify, worldwide income and gains are taxable.
Can I hold a GIFT City fund in an ISA or SIPP?
Not usually. GIFT City funds are offshore funds that are not normally eligible for ISAs or SIPPs; check with your provider.
Official sources
Rules change. Check the current position with the authority that sets it.
- HMRC — HS265 Offshore funds — How UK residents are taxed on reporting and non-reporting offshore funds.
- GOV.UK — Capital Gains Tax rates and allowances — Current UK rates and the annual exempt amount.
- GOV.UK — The 4-year foreign income and gains regime — The regime that replaced the remittance basis on 6 April 2025.
- Income Tax Department, Government of India — The Income-tax Act, including Section 10(4D), and TCS rules.
- IFSCA Directory of regulated entities — Check that a Fund Management Entity is registered.
Have a question about how this works?
Anup Vatyani explains GIFT City fund structures and the investment process in plain English. Educational conversation only, not personalised advice.
Talk to AnupThis page is educational and is not investment, tax or legal advice. Figures and rules are as understood at the date shown and can change; check the official sources and the scheme's offer documents. Investments are subject to market risks; read all scheme-related documents carefully.