Answers · UK 2025/26
What was the remittance basis for non-domiciled individuals and what replaced it?
The remittance basis allowed non-domiciled UK residents to pay UK tax only on foreign income and gains brought into (remitted to) the UK, rather than on their worldwide income. It was abolished from 6 April 2025 and replaced by the Foreign Income and Gains (FIG) regime, which gives new arrivals a 4-year exemption on foreign income and gains regardless of remittance.
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The remittance basis was a long-standing UK tax regime for individuals who were UK resident but non-domiciled (their permanent home was considered to be outside the UK). Under the remittance basis, foreign income and gains were only taxable in the UK if remitted (brought into or used in) the UK. UK-source income remained always taxable in the UK regardless. Remittance Basis Charge (RBC): individuals who had been UK resident for 7 of the preceding 9 years paid a £30,000 annual charge to access the remittance basis; those resident for 12 of the preceding 14 years paid £60,000. Claiming the remittance basis meant losing entitlement to the UK Personal Allowance and CGT Annual Exempt Amount for that tax year. Abolition from 6 April 2025: the Spring Budget 2024 announced and Finance Act 2025 enacted the abolition of the remittance basis. The new Foreign Income and Gains (FIG) regime took effect from 6 April 2025. FIG regime: individuals who were not UK resident in any of the 10 tax years before arriving in the UK qualify for the FIG regime. For their first 4 tax years of UK residence, all foreign income and gains are completely exempt from UK tax, regardless of whether they are remitted to the UK. No charge applies (unlike the old RBC). After 4 years, worldwide income and gains are fully taxable on the arising basis, as for any UK resident. Temporary Repatriation Facility (TRF): individuals who previously held foreign income and gains under the remittance basis can bring those pre-April 2025 amounts into the UK at a preferential rate: 12% in 2025/26, 15% in 2026/27 and 2027/28. The TRF is only available for amounts that were within the remittance basis and not yet remitted. Transitional protection: individuals who were already taxed on the arising basis and those in the FIG regime for 2025/26 can benefit from the TRF for historical unremitted amounts. HMRC guidance: RDR1 and the FIG regime factsheet at gov.uk.
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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.