India - Hrmc overseas asset, income or gain letter

[everfor]

Living in uk for 10 years and 5 years ago i got British citizenship. Last week i received the letter from Hrmc overseas asset income or gain letter, stating you may have received the overseas income or gains and need to pay uk tax and it's been exchanged tax information from other countries, but no transaction info has been given.

Regularly moving uk income to india into hdfc NRE account and deposited in NRE FD and in NRO account i've received rental income around 5 lacs yearly and that amount deposited into NRO FD. Also i've been filing india income tax return every year and paying the taxes under non-resident status.

1. i remember i've given the UK NI number to my hdfc bank under FATCA kyc. so i think bank should've exchanged my NRE/NRO info.
2. In income tax filling, i haven't given UK NI number, does the income tax will exchange the filling info to UK HRMC?
3. How to get the FATCA statement ? if i call to HRMC, they will give the details about the exchanged information?

in the letter, they sent me declaration form to be filled and return in 2 weeks in that it's given option
1. i need to bring my tax affairs up to date, i'll declare the outstanding uk tax using hrmc world wide disclosure facility.
2.i believe i had delcared all overseas gains and taxes.
3. i haven't declared my overseas income, they'll comes under personal allowance or relief.
4.it's not liable to uk

Please advise how to handle this situation and which option i need to choose? Appreciate your help

[BigMo]

The rules for income tax on overseas income are complicated and you will probably need input from your accountant on this but have you been filing under remittance basis? Generally, your residency position will be the starting point in determining the taxability of income (whether UK or worldwide). Further, you may get income tax relief under foreign tax credit (FTC) provisions on income that has been taxed elsewhere (to prevent double taxation). The UK/India treaty provisions on taxation of income (including rental income for indian based assets) will also need to be looked at. In short, you need an accountant who deals with internationally mobile individuals to look at this properly and then advise.

[seagul]

useful to read:

https://www.gov.uk/tax-foreign-income#: ... ,'domicile')%20is%20abroad.