Glossary · UK
What is Foreign Income and Gains (FIG) Regime?
The new UK tax regime from April 2025 replacing the remittance basis, giving new UK residents a 4-year exemption on foreign income and gains.
Full Definition
The Foreign Income and Gains (FIG) regime was introduced from 6 April 2025, replacing the remittance basis for non-domiciled individuals. Under FIG, an individual who becomes UK resident after a period of at least 10 consecutive tax years of non-UK residence is entitled to a 4-year exemption on foreign income and gains arising in those first four tax years of UK residence. Unlike the old remittance basis, FIG relief applies regardless of whether the income or gains are remitted to the UK -- the amounts are simply excluded from UK tax. Individuals must make a claim to use FIG relief on their Self Assessment return; they can choose not to claim in any given year (for example, if the foreign income is a loss). During the FIG period, the individual retains their Personal Allowance and CGT Annual Exempt Amount (unlike the remittance basis, which required forfeiting these). After the 4-year FIG period, the individual is taxed on worldwide income and gains in the normal way. The FIG regime also includes overseas workday relief for employees working partly abroad, and a special rule for overseas trusts. The Temporary Repatriation Facility (TRF) provides transitional relief for former non-doms wishing to remit pre-April 2025 foreign accumulations at 12% (2025/26 and 2026/27) or 15% (2027/28).