Glossary · UK
What is Foreign Income and Gains (FIG) Regime?
The replacement for the abolished remittance basis (from April 2025): new UK tax residents who have not been UK resident in the previous 10 years pay no UK tax on foreign income or gains for their first 4 years of residence.
Full Definition
The Foreign Income and Gains (FIG) regime was introduced from 6 April 2025 when the remittance basis of taxation was abolished. Under FIG, a qualifying new UK resident — someone who has not been UK tax resident in any of the 10 tax years before their arrival — is exempt from UK income tax and CGT on foreign income and gains arising in their first 4 tax years of UK residence. There is no limit on the amount of foreign income or gains that can be sheltered, and there is no requirement to keep the money offshore (unlike the old remittance basis). FIG applies to overseas employment income, foreign investment income, foreign capital gains, and offshore trust distributions. In year 5 of UK residence, full worldwide taxation applies regardless of domicile. The Temporary Repatriation Facility (TRF) allows pre-April 2025 foreign income and gains held by former remittance basis users to be brought to the UK at a reduced tax rate of 15% during 2026/27 only.