A guide for NRIs in the United Kingdom with assets in India — covering UK Inheritance Tax, the deemed domicile rule for long-term UK residents, Indian succession law for Indian assets, UK probate vs Indian proceedings, and how to coordinate UK and Indian estate plans without the Wills inadvertently cancelling each other.
Quick Summary
UK-resident NRIs with assets in both the UK and India face two separate and independent legal systems on succession. Indian assets — property in Kerala, bank accounts, fixed deposits, shares — are governed entirely by Indian succession law regardless of UK residence or domicile. A succession certificate from the Indian District Court is required for Indian financial assets; Indian property passes under the applicable Indian personal law. UK IHT applies to worldwide assets of UK-domiciled individuals at 40% above £325,000 (nil-rate band, 2026). UK-resident NRIs who have been resident in the UK for 15 of the last 20 tax years are treated as UK-domiciled under the deemed domicile rules — bringing their Indian property within the scope of UK IHT.
A UK Will does not automatically govern Indian property — separate Indian succession proceedings are always required. A separate Indian Will covering Indian assets, with updated nominations on all Indian financial accounts, provides the most efficient estate administration framework for UK-based NRIs.
Key references: Indian Succession Act, 1925 · Hindu Succession Act, 1956 · eCourts India · Kerala Registration Dept · Last reviewed: June 2026
UK Inheritance Tax (IHT) is charged at 40% on the net estate above the nil-rate band of £325,000 (2026). An additional residence nil-rate band of £175,000 may be available where the family home passes to direct descendants. IHT applies to the worldwide assets of UK-domiciled individuals — which means Indian property held by a UK-domiciled NRI is within the scope of UK IHT.
Even if an NRI considers themselves domiciled in India, they are treated as UK-domiciled for IHT purposes if they have been resident in the UK for 15 of the last 20 UK tax years. This rule — the "deemed domicile" provision — captures long-term UK residents regardless of their subjective intention about domicile.
For the large community of UK Malayalis who came to the UK in the 1960s, 70s, and 80s — particularly NHS nurses and doctors, and their subsequent generations — the 15-year deemed domicile threshold has almost certainly been crossed. Their Indian property, bank accounts, and financial assets are within the scope of UK IHT.
The nil-rate band of £325,000 has been frozen since 2009. Transfers between spouses are exempt from IHT regardless of domicile. Each individual has their own nil-rate band; unused nil-rate band can be transferred to a surviving spouse, giving couples a combined threshold of up to £650,000 (plus any residence nil-rate band). Gifts made more than 7 years before death are exempt from IHT under the potentially exempt transfer (PET) rules.
Indian assets of a deceased UK-resident NRI are governed entirely by Indian succession law, regardless of UK residence, domicile, or the UK IHT position. The governing law depends on religion:
Hindu, Sikh, Buddhist, or Jain NRIs: The Hindu Succession Act, 1956 governs intestate succession. Class I heirs — spouse, children, and mother — take simultaneously in equal shares. The Supreme Court in Vineeta Sharma v. Rakesh Sharma (2020) confirmed daughters have equal coparcenary rights in ancestral property, applicable regardless of where the NRI resides.
Christian NRIs: The Indian Succession Act, 1925 governs both testamentary and intestate succession. On intestacy, one-third passes to the spouse and two-thirds to lineal descendants.
Bank accounts, fixed deposits, shares, and mutual funds in India require a valid nomination claim or a succession certificate from the Indian District Court. All Indian financial accounts should carry updated nominations. The succession certificate process typically takes 3 to 6 months in Kerala courts but is considerably faster than contested probate proceedings.
Kerala property passes under the applicable Indian personal law on intestacy, or under the Will if one exists and is properly registered. A registered Indian Will — as opposed to one merely executed but not registered — significantly reduces the risk of challenge and simplifies the transfer process at the Sub-Registrar's office.
A UK Grant of Probate does not extend to Indian assets. A UK executor's authority under a UK Will or UK Grant of Probate does not permit dealing with Indian property — Indian financial institutions and the Sub-Registrar in Kerala require Indian legal documentation before releasing assets or registering transfers.
In practice this means that even where a UK-based NRI has a well-drafted UK Will with an efficient UK executor, a parallel Indian process is required for Indian assets. The most efficient approach combines:
For UK-based Malayali NRIs with significant assets in both countries, estate planning requires coordination across two jurisdictions:
Both Wills must be drafted to avoid the later Will revoking the earlier one. The standard revocation clause in a UK Will ("I revoke all former Wills") will revoke a previously executed Indian Will unless specifically excluded. This is a critical and frequently overlooked drafting point that requires attention in both jurisdictions.
UK IHT applies to worldwide assets of UK-domiciled individuals at 40% above £325,000. UK-resident NRIs resident for 15 of the last 20 tax years are treated as UK-domiciled under the deemed domicile rule — bringing their Indian property within scope. Domicile is distinct from nationality and residence; specialist advice is required.
Under the deemed domicile rule for UK IHT, a person is treated as UK-domiciled if they have been resident in the UK for 15 of the last 20 UK tax years. Long-term UK Malayali residents — particularly those who came in the 1960s-80s — will typically have crossed this threshold, making their worldwide assets including Indian property subject to UK IHT.
No. A UK Grant of Probate does not cover Indian assets. Indian financial assets require a succession certificate from the Indian District Court. Indian immovable property requires transfer through the Indian Will or intestate succession. Separate Indian proceedings are always required, regardless of the UK probate position.
A UK Will may be recognised for Indian property if it satisfies Indian Succession Act formalities for Wills executed outside India. However, a separate Indian Will covering Indian assets is safer and more efficient — it reduces complexity, cost, and litigation risk. The Indian Will must contain a non-revocation clause to prevent it being cancelled by the UK Will.
Yes, if not carefully drafted. A UK Will with a standard 'I revoke all former Wills' clause will revoke a previously executed Indian Will unless the Indian Will is specifically excluded from revocation. This is a critical drafting issue requiring attention in both jurisdictions when preparing dual Wills.
The office advises on Indian Will drafting, succession certificates, property transfer, and the interaction between UK and Indian succession law. All matters managed remotely.
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