The UK-India Trade Deal: Investment opportunities and business mobility

The UK and India have always held a special relationship and in our view, a groundbreaking trade deal has been finalised last week between the two countries. We are delighted to see the two economies commit to this deal, particularly in the context of strategic alignment from movement of human capital and business collaboration.

The UK-India trade deal has potential to serve as a model for future trade agreements between developed and emerging economies. The deal showcases how both countries balanced their interests. For instance, while the UK secured significant tariff reductions on goods like whisky and cars, India managed to protect its dairy and rice sectors. This demonstrates a pragmatic approach to negotiations, where both sides made concessions to achieve a mutually beneficial outcome.

Historical Context

The UK and India have been negotiating a Free Trade Agreement (FTA) since 2022, aiming to strengthen economic ties between the world’s fifth and sixth largest economies. This deal is particularly significant for the UK as it represents one of the most substantial trade agreements since Brexit. The negotiations spanned over three years, involving 14 rounds of discussions. The deal was finally concluded on May 6, 2025. The agreement is expected to boost bilateral trade by £25.5 billion annually and increase UK GDP by £4.8 billion. It also aims to raise UK wages by £2.2 billion each year

The UK-India trade deal could have several impacts on high net worth families, particularly in terms of investment opportunities, lifestyle enhancements, and business mobility.

Investment Opportunities

• Luxury Goods: Tariff reductions on luxury items such as Scotch whisky and high-end automobiles could make these products more accessible and affordable.
• Real Estate: The deal could stimulate investment in real estate, both in the UK and India, as economic growth and increased business mobility drive demand for premium properties.

Business Mobility

• Professional Opportunities: High net worth families involved in international business may benefit from the streamlined visa processes and temporary business mobility provisions. This includes easier access for professionals such as IT experts and investors. The provisions also include roles like chefs, yoga instructors, and musicians.
• Tax Benefits: Indian workers temporarily posted in the UK are exempt from paying UK National Insurance contributions for up to three years. Instead, they will continue to pay into India’s social security system. This arrangement prevents double taxation and is similar to agreements the UK has with other countries. Note that Indian workers temporarily in the UK will still need to pay the Immigration Health Surcharge, ensuring they contribute to the UK’s healthcare system.

Strategic Investments

• Emerging Markets: The deal positions the UK strategically to capitalize on India’s rapidly growing economy. High net worth families might find new opportunities for strategic investments in sectors like advanced manufacturing, digital services, and food products.

Immigration Aspects

• Business Mobility: The agreement widens and opens an existing temporary business mobility to Indian nationals, specifically for professionals such as Contractual Service Suppliers, Business Visitors, Investors, and Intra-Corporate Transferees. This includes roles like Indian chefs, yoga instructors, musicians, and IT experts.
• Visa Application Process: The UK has committed to maintaining transparent and efficient visa procedures, improving the consistency and clarity of visa application processes. This aims to reduce administrative and financial burdens for UK employers when sponsoring Indian nationals for short- to medium-term assignment, there will be no changes to the UK immigration health surcharge for Indian nationals.
• Family Members: Partners of intra-corporate transferees will have the right to work in the UK which appears to be consistent with current PBS dependant applications.
• Points-Based Immigration System: The deal does not affect the UK’s existing points-based immigration system. It focuses on temporary business mobility rather than long-term immigration or settlement.

The Temporary Business mobility schemes could lead to an increase of Indian businesses sending workers to the UK on a short-term basis due to the advantageous agreement put in place. Temporary workers will be exempt from paying UK national insurance contributions for up to three years.

This agreement not only enhances economic cooperation but also strengthens the strategic partnership between the UK and India, fostering innovation, job creation, and economic growth in both nations. The specific tax and immigration provisions aim to enhance fair treatment for workers whilst maintaining the integrity of the UK’s immigration policies.

Tax Partner, Hetal Sanghvi, comments “The UK-India trade deal is more than just an economic agreement; it’s a gateway to sophisticated tax planning and wealth preservation for global Indian families. Having worked with such families for over a decade, this is a welcome development for those promoter businesses that are looking at cross-border expansion. Equally interesting will be opportunities for the relocation of key family members of global Indian families, aligning with the families’ succession goals. I understand that the parallel talks to agree a bilateral investment agreement did not reach a resolution which is disappointing. This means that neither financial services nor the legal service sectors were included in the deal. This could have been meaningful for global Indian families as legal protections for investments between the UK and India could have been established. That said, as a result of the deal, this next era should see us embrace innovation in wealth management whilst navigating the complexities of global finance, which is an exciting chapter.”

Head of Immigration, Sundeep Rathod, comments: “This deal has little impact on the UK’s points-based system although we may see a shift in more positive and quicker decision-making on certain visa applications from Indian nationals. It’s clear to see at the forefront of the Government’s intention was balancing a fair trade deal whilst at the same dealing with ongoing domestic debate over immigration controls, particularly in the post-Brexit environment where public and political pressures around immigration remain high.”

If you have any questions relating to the UK and India Trade Deal and how these changes may impact you, please contact a member of the Tax team or the Immigration team.

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