What happened to the remittance basis for non-domiciled individuals from 2025?

Full answer

The remittance basis of taxation — which allowed non-domiciled UK residents to pay UK tax only on foreign income and gains brought into the UK — was abolished from 6 April 2025 as announced at Spring Budget 2024. **The new FIG regime (from 6 April 2025)** New arrivals to the UK who have not been UK tax resident in any of the 10 tax years preceding their arrival qualify for the Foreign Income and Gains (FIG) regime. Under FIG: - Foreign income and gains are exempt from UK tax for the first 4 tax years of UK residence - No limit on the amount of foreign income or gains that can be exempted - No requirement to keep the money offshore — it can be brought to the UK freely - Applies to employment income from overseas work, foreign investment income, overseas capital gains, and income from offshore trusts and structures **Who does not qualify?** Anyone who has been UK resident in any of the previous 10 tax years cannot use FIG. Those in their 5th year of UK residence move onto full UK taxation regardless of domicile status. **Transitional relief (already ended)** For the 2025/26 tax year only, existing non-doms who had previously used the remittance basis could bring pre-April 2025 foreign income and gains to the UK at a reduced 12% tax rate (Temporary Repatriation Facility, TRF). This reduced rate ended 5 April 2026. The TRF continues at 15% for 2026/27 only. **Overseas Workday Relief** Overseas Workday Relief (OWR) continues in a modified form — qualifying employees in their first 4 years of UK residence can claim relief on earnings attributable to overseas workdays, for up to 4 years.

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