ARTICLE · 27 MARCH 2025

Understanding The UK's New Foreign Income And Gains Rules

Dixcart Group Limited

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Starting from 6 April 2025, the UK will implement significant changes to the taxation of non-UK domiciled individuals.

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From 6 April 2025, the UK implemented significant changes to the taxation of non-UK domiciled individuals. The remittance basis of taxation, which was based on domicile status, has been removed and replaced with a new tax regime based solely on tax residence under the UK's Statutory Residence Test.

This article explores the benefits of the new Foreign Income and Gains (FIG) regime for recent arrivals in the UK, whether originally from the UK or not.

The 4-Year Foreign Income and Gains (FIG) Regime:

From 6 April 2025, the new regime will provide 100% exemption from UK taxation on foreign income and gains for new arrivals to the UK in their first four years of tax residence, provided they have not been UK tax resident in any of the ten consecutive years prior to their arrival.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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