Glossary · UK
What is Remittance Basis Charge (and FIG Regime)?
Non-domiciled UK residents using the remittance basis paid an annual charge of GBP 30,000 (resident 7 of 9 years) or GBP 60,000 (resident 12 of 14 years). The non-dom regime was abolished from April 2025 and replaced by the 4-year FIG regime for new arrivals.
Full Definition
The remittance basis charge (RBC) was a charge payable by long-term UK residents who elected to use the remittance basis of taxation to shelter overseas income and gains from UK tax. The RBC applied as follows: GBP 30,000 per year for individuals who had been UK resident in at least 7 of the preceding 9 tax years; GBP 60,000 per year for those resident in at least 12 of the preceding 14 tax years. In exchange for paying the RBC, the individual did not have to pay UK tax on unremitted foreign income and gains for that year, and they also lost entitlement to the Personal Allowance and the CGT Annual Exempt Amount. Individuals resident for fewer than 7 years could claim the remittance basis without paying the RBC, but also lost their Personal Allowance and AEA from the 2008/09 reforms. From 6 April 2025, the non-domicile remittance basis was abolished entirely. It was replaced by the Foreign Income and Gains (FIG) regime: new UK tax residents who have not been UK resident in any of the preceding 10 tax years can elect to pay no UK tax on foreign income and gains for their first 4 years of UK residence, without paying a charge. After 4 years, all worldwide income and gains become taxable in the UK regardless of domicile. Existing non-doms who had been using the remittance basis became subject to UK tax on worldwide income and gains from 6 April 2025. A Temporary Repatriation Facility (TRF) was introduced for 2025/26 and 2026/27 allowing formerly non-dom individuals to remit pre-April 2025 foreign income and gains at a reduced rate.