Key takeaways
- The India–UK CETA took effect on 15 July 2026.
- The Double Contributions Convention spares posted employees double social-security contributions for up to 5 years.
- Income tax still follows the India–UK tax treaty.
What happened
- CETA was signed on 24 July 2025 and took effect on 15 July 2026.
- The Double Contributions Convention (DCC), signed on 10 February 2026, took effect the same day.
The social-security win: no double contributions
- Employees temporarily posted from India to the UK (or the UK to India) can stay in their home social-security system for up to 5 years (60 months), instead of paying into both.
- It covers employees, not the self-employed. Get the certificate of coverage before the posting starts.
- For Indian IT and services companies with UK projects, and UK firms with India teams, this is a direct cost saving.
Goods and services
- Tariffs on most Indian exports to the UK are removed or cut; UK goods such as whisky, cars and medical devices get phased tariff cuts into India.
- Rules of origin decide who benefits — exporters need origin certificates and records.
What doesn’t change
Income tax between India and the UK is still governed by the India–UK tax treaty: withholding on dividends, royalties and fees, and permanent-establishment rules. See India–UK cross-border services and India tax for foreign companies.
Sources
Frequently asked questions
Is the India–UK trade deal in force?
Yes. The India–UK Comprehensive Economic and Trade Agreement took effect on 15 July 2026, after being signed on 24 July 2025.
What is the India–UK Double Contributions Convention?
A social-security agreement in force from 15 July 2026 that lets employees temporarily posted between India and the UK stay in their home system for up to five years instead of paying contributions in both countries.
Does the India–UK trade deal change income tax?
No. Income tax is still governed by the India–UK tax treaty; CETA covers tariffs, services and investment, and the DCC covers social-security contributions.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.