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SGB for NRIs in UK

Understanding Sovereign Gold Bond rules for Indians in UK

NRIs Cannot Invest in SGBs

As per FEMA (Foreign Exchange Management Act) regulations, Non-Resident Indians are NOT eligible to purchase Sovereign Gold Bonds, whether through primary market or secondary market (stock exchanges).

**Can NRIs in the United Kingdom invest in Sovereign Gold Bonds?**

**No**. Like NRIs in all countries, Indians residing in the UK cannot invest in SGBs due to FEMA restrictions.

**UK-specific considerations:** - UK has Capital Gains Tax on gold investments - India-UK DTAA can help avoid double taxation - Consider ISA-eligible gold funds for tax efficiency in UK

Key Points for NRIs in UK

NRIs in UK CANNOT purchase SGBs under FEMA regulations

UK has CGT on gold investments (exempt in ISA wrapper)

Indian Gold ETFs available through NRI demat accounts

India-UK DTAA provides some tax relief

Consider UK-listed gold ETFs for tax efficiency

Alternative Gold Investments for NRIs

UK Gold ETFs (iShares, etc.)

Available

Gold ETFs available on London Stock Exchange

GBP denominated, can be held in ISA for tax efficiency

Indian Gold ETFs

Available

Gold ETFs on NSE/BSE through NRI demat account

INR exposure, allowed for NRIs

Physical Gold

Available

Gold coins and bars from UK dealers

VAT may apply on some gold products

Sovereign Gold Bonds

Not Allowed

Government of India gold bonds

NOT allowed for NRIs under FEMA

Tax Implications for UK Residents

  • UK Capital Gains Tax applies to gold investments (unless in ISA)
  • Annual CGT allowance can shelter some gains
  • Indian income must be reported to HMRC
  • India-UK DTAA helps avoid double taxation
  • Consider ISA for tax-free gold investment in UK

Important Disclaimer

**IMPORTANT DISCLAIMER:** 1. **NRIs CANNOT invest in Sovereign Gold Bonds (SGBs)** as per FEMA (Foreign Exchange Management Act) regulations. This applies to both primary market (RBI issues) and secondary market (stock exchanges). 2. If you became an NRI after purchasing SGBs as a resident Indian, you may continue to hold them until maturity but should consult a tax professional regarding implications. 3. This information is for educational purposes only and does not constitute legal, tax, or investment advice. NRI regulations are complex and vary by country of residence. 4. Please consult a qualified CA, tax advisor, or legal professional familiar with FEMA regulations and your country's tax laws before making any financial decisions. 5. Information provided is based on our understanding as of 2026 and may be subject to change.

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Frequently Asked Questions

No, the restriction is based on your residential status under FEMA, not your address. If you're an NRI, you cannot buy SGBs regardless of the address used.
Holding gold ETFs within an ISA wrapper provides tax-free gains in the UK. This is more tax-efficient than physical gold or non-ISA investments.
SGBs can be gifted or transferred to a resident Indian. However, there may be gift tax implications. Consult a CA for proper transfer procedures.

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