Answers · UK 2025/26
What is the new Foreign Income and Gains (FIG) regime from 6 April 2025?
The FIG regime replaced the non-dom remittance basis from 6 April 2025. New UK arrivals (not UK resident in any of the prior 10 tax years) can elect to exempt all foreign income and gains from UK tax for their first 4 years of UK residence. After 4 years, worldwide income is taxed normally. A Temporary Repatriation Facility allows former non-doms to bring pre-April-2025 foreign funds to the UK at 12% tax.
Full answer
The Foreign Income and Gains (FIG) regime fundamentally replaced the long-standing non-domicile remittance basis system from 6 April 2025. It was introduced following the abolition of non-dom status by the previous government, with the rules refined in subsequent legislation. Under the FIG regime, an individual who becomes UK tax resident and has not been UK tax resident in any of the 10 tax years immediately before their arrival can make a FIG election for each of their first four tax years of UK residence (years 1-4 only). The election exempts all foreign income and foreign gains from UK tax in the elected years, regardless of whether the funds are brought into (remitted to) the UK. This is a significant simplification compared to the old remittance basis, which required tracking which funds were remitted. After 4 years of UK residence, the FIG exemption expires and the individual is taxed on their worldwide income and gains as a normal UK resident -- there is no transition relief after the 4-year window. The election is made on the Self Assessment return for the relevant year and is irrevocable for that year. A FIG year election has a cost: you cannot use the personal allowance or the CGT annual exempt amount in an elected year (you lose those UK allowances in exchange for the foreign income/gains exemption). The Temporary Repatriation Facility (TRF) is a separate measure for existing and former non-doms who accumulated foreign income and gains under the old remittance basis before 6 April 2025. They can remit those pre-April-2025 funds to the UK at a reduced tax rate of 12% (for 2025/26 and 2026/27), rising to 15% in 2027/28, after which the facility closes. The old Remittance Basis Charge (£30,000 and £60,000 per year) has been abolished. The Overseas Workday Relief (OWR) continues in modified form for the first three years of UK residence for employees who have employment duties overseas.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.