What is the Remittance Basis Charge in 2026/27 in the UK?

Full answer

The remittance basis was a long-standing UK tax regime that allowed non-domiciled individuals (non-doms) to pay UK tax only on foreign income and gains that they brought ('remitted') into the UK. A Remittance Basis Charge (RBC) applied to those who had been UK-resident for a certain number of years: - 7 out of 9 tax years: £30,000/year charge - 12 out of 14 tax years: £60,000/year charge - 17 out of 20 tax years: £90,000/year charge (this tier was later removed) These charges were paid in exchange for continuing to use the remittance basis. Abolition from April 2025: Budget 2024 (Autumn 2024) confirmed the remittance basis regime was abolished from 6 April 2025. There is no Remittance Basis Charge in 2026/27 or beyond. Replacement: 4-year FIG exemption: - New UK residents who have not been UK-resident in any of the 10 preceding tax years can elect for a 4-year foreign income and gains exemption. - Under this regime, all foreign income and gains are tax-free for the first 4 years of UK residency, regardless of whether funds are remitted to the UK. - After 4 years, the individual is taxed on worldwide income and gains in the normal way. Transitional provisions: - Individuals who had previously used the remittance basis had access to a Temporary Repatriation Facility (TRF) allowing pre-April 2025 foreign income and gains to be remitted to the UK at a reduced flat rate tax charge (12% in 2025/26 and 2026/27, rising to 15% in 2027/28). The reform significantly changes UK tax planning for internationally mobile individuals and their advisers.

Related guides

• Uk Non Dom Fig Regime

More answers

• How does the Statutory Residence Test work for UK tax purposes?