What is the Foreign Income and Gains FIG regime for new UK arrivals?

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What Is the FIG Regime? The Foreign Income and Gains (FIG) regime replaced the previous non-domicile (non-dom) remittance basis from 6 April 2025. It is a residence-based system rather than a domicile-based one. Eligible individuals can elect to exclude qualifying foreign income and gains from UK tax for up to four consecutive tax years after becoming UK resident. Who Qualifies? To access the FIG regime you must: - Become UK tax resident on or after 6 April 2025 - Have been non-UK resident for at least 10 consecutive tax years immediately before your first year of UK residence - Make a valid election on your Self Assessment return for each year you wish to use the relief Long-term UK residents (those who were UK-domiciled or UK-resident for many years before 2025) do not qualify. What Income and Gains Are Covered? The FIG regime covers foreign employment income, overseas investment income (dividends, interest), foreign rental income, and foreign capital gains arising during the four-year window. The income and gains must arise outside the UK -- UK-source income remains fully taxable regardless. The Trade-Off Electing for FIG relief in any given year means you forfeit personal allowances, the CGT annual exempt amount (GBP 3,000 in 2026/27), and certain other reliefs for that year. You should therefore calculate whether the FIG election saves more tax than the reliefs you give up -- it is most valuable when foreign income and gains are large. Remittance to the UK Under the FIG regime, there is no remittance restriction. You can bring foreign income and gains into the UK freely during the four-year period without triggering UK tax. This is a significant improvement over the old remittance basis. After Four Years Once the four-year window expires, all worldwide income and gains become fully taxable in the UK in the normal way, regardless of domicile. Individuals with pre-April 2025 foreign income held offshore may be eligible for a separate Temporary Repatriation Facility (TRF) offering a reduced flat rate for a limited period. Planning Considerations The FIG regime is particularly relevant for internationally mobile executives, entrepreneurs, and investors relocating to the UK. Given the interaction with personal allowances and other reliefs, professional advice is strongly recommended before making the election.

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