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ISA vs SIP — Full Tax Calculator
The only calculator built for UK Indians — LTCG/STCG, UK Self Assessment CGT, Foreign Tax Credit, INR depreciation, inflation-adjusted returns. True after-tax comparison.
Investment inputs
Monthly amount £500
Max £1,666/mo = £20k/yr ISA allowance
Over the £20,000 ISA annual limit. ISA capped at £1,666/mo. Use “ISA First, then SIP” to model the optimal split.
Time horizon 20 yrs
3 to 35 years
ISA annual return 7%
Global index fund historical avg: 7–9%
SIP annual return 12%
Indian equity MF historical avg: 10–14%
GBP/INR today ₹107
Tax & adjustment inputs
UK CGT rate 18%
Applies to investment gains on UK Self Assessment
INR depreciation vs GBP 3%/yr
Historical avg ~3–4%/yr. Set 0 to ignore currency risk.
SIP holding:
Show returns:
FTC note: Foreign Tax Credit requires Form 15CA/CB from a CA and correct UK SA filing. This shows theoretical maximum relief. Use a qualified tax advisor for actual FTC claims.
Results after 20 years
Stocks & Shares ISA WINNER
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Invested: -
Growth (tax-free): -
Tax saved vs non-ISA: -
Growth (tax-free): -
Tax saved vs non-ISA: -
Indian Mutual Fund SIP WINNER
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Gross before tax: -
In rupees at exit: -
Exit GBP/INR: -
India tax paid: -
UK top-up after FTC: -
Net after all taxes: -
In rupees at exit: -
Exit GBP/INR: -
India tax paid: -
UK top-up after FTC: -
Net after all taxes: -
ISA First + SIP Surplus Strategy
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Bottom line
Calculating...
Move sliders to see your result
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Full tax breakdown
ISA total tax £0 — fully tax-free
SIP — India tax
Type -
Rate -
India tax paid -
SIP — UK Self Assessment
Gains in GBP -
UK CGT exempt (annual) −£3,000
UK CGT gross -
FTC credit -
UK top-up owed -
Total SIP tax -
Effective rate on gains -
INR depreciation
Entry rate -
Exit rate (20 yrs) -
SIP without depr. -
SIP with depr. -
Lost to INR weakness -
Redemption note
Assumes lump exit in one tax year. Redeeming over multiple years gives £3,000 UK CGT exempt and £1,00,000 INR LTCG exempt per year — reducing total tax. Ask your CA about exit strategies.
Growth over time
Chart compares the same investment amount in both for a fair comparison. The results panel above shows full figures.
ISA (tax-free)
SIP gross (GBP)
Invested
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Important tax assumptions:
(1) Assumes all SIP units redeemed in a single tax year. Spreading redemptions over multiple years gives £3,000 UK CGT exempt and £1,00,000 INR (≈£720–£950 at current rates) LTCG exempt each year — significantly reducing tax on large portfolios.
(2) FTC shown is theoretical maximum. Actual relief requires correct dual-country filing and professional CA advice.
(3) INR depreciation modelled as constant annual rate. Actual rates fluctuate.
(4) Real returns: both ISA and SIP nominal results are divided by the same UK inflation deflator to show purchasing power in today's pounds. India inflation is shown as information (real INR return) and does not separately adjust the calculation — it is already embedded in your chosen SIP return rate assumption.
(1) Assumes all SIP units redeemed in a single tax year. Spreading redemptions over multiple years gives £3,000 UK CGT exempt and £1,00,000 INR (≈£720–£950 at current rates) LTCG exempt each year — significantly reducing tax on large portfolios.
(2) FTC shown is theoretical maximum. Actual relief requires correct dual-country filing and professional CA advice.
(3) INR depreciation modelled as constant annual rate. Actual rates fluctuate.
(4) Real returns: both ISA and SIP nominal results are divided by the same UK inflation deflator to show purchasing power in today's pounds. India inflation is shown as information (real INR return) and does not separately adjust the calculation — it is already embedded in your chosen SIP return rate assumption.
How this works:
ISA: Monthly or lump contributions (capped at £20,000/yr) compounding tax-free. Zero tax reporting.
SIP: Contributions converted to INR at today's rate, growing at your SIP return. At exit, converted back to GBP at the depreciation-adjusted rate. Indian LTCG (12.5% above £1,00,000 INR gains) or STCG (20%) applied. UK CGT applied above £3,000 annual exempt, with FTC for Indian tax paid — only the differential is owed to HMRC.
ISA First mode: Allocates £1,666/mo to ISA (maxing the annual allowance), remainder to SIP. Compares this combined strategy against going all-ISA or all-SIP.
Real returns: Both results are divided by the UK inflation deflator to show purchasing power in today's pounds. This applies consistently to both investments.
ISA: Monthly or lump contributions (capped at £20,000/yr) compounding tax-free. Zero tax reporting.
SIP: Contributions converted to INR at today's rate, growing at your SIP return. At exit, converted back to GBP at the depreciation-adjusted rate. Indian LTCG (12.5% above £1,00,000 INR gains) or STCG (20%) applied. UK CGT applied above £3,000 annual exempt, with FTC for Indian tax paid — only the differential is owed to HMRC.
ISA First mode: Allocates £1,666/mo to ISA (maxing the annual allowance), remainder to SIP. Compares this combined strategy against going all-ISA or all-SIP.
Real returns: Both results are divided by the UK inflation deflator to show purchasing power in today's pounds. This applies consistently to both investments.
Educational tool only — not financial advice. Tax rules change: verify all rates before decisions. ISA allowance £20,000/yr. UK CGT exempt £3,000/yr (2024/25). Indian LTCG 12.5% above £1L INR; STCG 20% (post Aug 2024 Budget). FTC requires professional advice. Returns not guaranteed. Pound & Paisa may earn commission via affiliate links.
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Send Money to India — True Cost Comparison
Most providers hide their profit in the exchange rate, not the fee. This shows you the real total cost — including the hidden FX markup — so you know exactly what your family actually receives.
How much are you sending?
£ GBP
Mid-market rate: ₹107.00 / £1
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Edit rate ✏️
GBP/INR mid-market:
Check Wise or Google for today's live rate, then enter it here.
Comparing 5 providers
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How hidden FX markup works:
Every provider uses the mid-market rate (what you see on Google or Reuters) as their starting point. They then offer you a slightly worse rate and quietly pocket the difference. This “hidden fee” is often larger than any transfer fee shown upfront. A 2% markup on £5,000 costs you £100 that never appears as a line item. This tool shows you both the visible fee and the hidden markup, so you can compare the true total cost.
Every provider uses the mid-market rate (what you see on Google or Reuters) as their starting point. They then offer you a slightly worse rate and quietly pocket the difference. This “hidden fee” is often larger than any transfer fee shown upfront. A 2% markup on £5,000 costs you £100 that never appears as a line item. This tool shows you both the visible fee and the hidden markup, so you can compare the true total cost.
Rates and fees last updated: April 2026. Exchange rates and provider fees change frequently — always check the provider's own website for the live rate before sending. Enter today's actual mid-market rate using “Edit rate” for the most accurate comparison. Figures shown are for bank-to-bank transfers paid by bank debit. ICICI Money2India flat fee waived for transfers over £1,000. Remitly economy rate shown — express option is faster but costs more. Remitly first-transfer promotional rate may be better than shown. PayPal is designed for payments between individuals, not for remittances — fees shown are approximate. All figures are estimates.
Educational tool only. Rates and fees are estimates based on publicly available data and change frequently. Always verify on each provider's website before sending. Pound & Paisa may earn a commission via affiliate links on this page.
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Do You Need an NRE, NRO — or Both?
8 questions. 2 minutes. Find out exactly which Indian bank account you need as a UK-based NRI — and why.
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Educational tool only — not financial or legal advice. Rules may differ based on your individual circumstances. Consult a CA or financial adviser for personalised guidance. Pound & Paisa may earn commission via affiliate links.