FIG Regime & New Non-Dom Tax Changes

What Changed for Non-Doms in the UK?

From 6 April 2025, the previous non-dom tax regime and remittance basis officially ended. Instead, the UK government introduced a new tax system based mainly on tax residence rather than domicile status.

Under the previous rules, non-doms could avoid UK tax on foreign income and gains unless the money was brought into the UK. This was known as the remittgoance basis.

However, from April 2025, the remittance basis was abolished and replaced with the new Foreign Income and Gains (FIG) regime.

This became one of the biggest UK tax reforms for internationally mobile individuals in decades.

At Taxeezy, we are already helping clients review overseas income, offshore structures, and residency planning ahead of these major tax changes.

What Is the FIG Regime?

The FIG regime became a new 4-year tax relief system for people who moved to the UK after being non-UK resident for at least 10 consecutive tax years.

Eligible individuals no longer paid UK tax on their foreign income and gains during their first four years of UK tax residence.

Importantly, unlike the old remittance basis, foreign income and gains could also be brought into the UK without extra tax charges.

This made the new system simpler and potentially more attractive for new arrivals to the UK.

Who Could Use the FIG Regime?

To qualify for the FIG regime, an individual needed to:

• Become UK tax resident on or after 6 April 2025
• Have been non-UK resident for at least 10 tax years before arriving in the UK
• Make a claim to use the FIG regime#

The relief applied only for the first four tax years of UK residence.

For example, if someone moved to the UK in the 2025/26 tax year after living abroad for more than 10 years, they could qualify for tax-free foreign income and gains until the end of the 2028/29 tax year.

Because eligibility depends heavily on residency history and personal circumstances, obtaining professional tax advice early is extremely important.

Key Benefits of the FIG Regime

The FIG regime introduced several important advantages for qualifying individuals.

Tax-Free Foreign Income and Gains

Eligible individuals did not pay UK tax on:

• Overseas investment income
• Foreign employment income
• Overseas rental income
• Foreign capital gains

This applied during the four-year qualifying period.

No Tax on Bringing Money to the UK

Under the old remittance basis, bringing foreign income into the UK often created additional UK tax charges.

The FIG regime removed this issue completely for qualifying individuals.

Simpler Compliance Rules

The previous non-dom rules were often extremely complex, especially when tracking mixed funds and offshore accounts.

The FIG regime simplified reporting requirements significantly.

Taxeezy’s international tax guidance team supports clients with overseas reporting, residency reviews, HMRC compliance support, and foreign income planning.

What Happened to Existing Non-Doms?

Existing non-dom residents in the UK were also affected by the new rules.

Those who did not qualify for the FIG regime moved onto the normal UK tax system from April 2025 and became taxable on worldwide income and gains.

However, the government introduced several transitional reliefs.

Transitional Relief for Existing Non-Doms

50% Foreign Income Reduction

For the 2025/26 tax year only, some individuals moving from the remittance basis to the arising basis paid tax on only 50% of their foreign income.

This relief did not apply to foreign capital gains.

Capital Gains Tax Rebasing

Certain individuals who previously used the remittance basis became eligible to rebase foreign assets to their market value as at 5 April 2019.

This reduced future Capital Gains Tax liabilities when assets were sold.

Temporary Repatriation Facility (TRF)

The government also introduced a Temporary Repatriation Facility.

Under this scheme, individuals could remit pre-April 2025 foreign income and gains to the UK at a reduced tax rate of 12% during:

• 2025/26
• 2026/27

This created a valuable opportunity for many existing non-doms to bring overseas funds into the UK more efficiently.

Changes to Overseas Workday Relief (OWR)

The Overseas Workday Relief rules continued in a simplified form.

Employees using the FIG regime could still claim relief on overseas employment duties for their first three years of UK residence.

However, eligibility now depended on residence status and use of the FIG regime rather than domicile status.

New Trust Taxation Rules

One major change involved offshore trust structures.

From April 2025, trust protections previously available to non-doms largely ended for individuals who did not qualify for the FIG regime.

Foreign income and gains arising within offshore trusts became taxable on UK resident settlers in many situations.

This area became significantly more complex, particularly for high-net-worth individuals and families with existing offshore structures.

Taxeezy’s complex tax advisory experience helps clients review offshore trust exposure, overseas assets, and international tax risks under the new rules.

Inheritance Tax Changes from 2025

The government also moved towards replacing the domicile-based inheritance tax system with a residence-based system.

Current proposals suggested:

• Individuals could become subject to UK inheritance tax on worldwide assets after 10 years of UK residence
• A “tail” period could keep individuals within the UK inheritance tax net even after leaving the UK

These changes created major implications for international estate planning.

Who Is Most Affected by These Changes?

The new FIG regime and non-dom tax reforms are likely to have the biggest impact on:

• Internationally mobile individuals
• Long-term UK resident non-doms
• High-net-worth individuals
• Landlords with overseas property income
• Offshore trust beneficiaries
• Business owners with foreign investments or overseas assets

Individuals who previously relied on the remittance basis may now face UK taxation on worldwide income and gains from April 2025 onwards.

In particular, those with complex offshore structures, foreign investment portfolios, or international business interests may need to review their residency status, tax planning arrangements, and inheritance tax exposure carefully under the new residence-based system.

Individual Relocating to the UK – What Should You Consider?

Individuals planning to relocate to the UK should review their tax position carefully before becoming a UK tax resident.

Important areas to consider include:

• Overseas income
• Existing offshore structures
• Inheritance tax exposure
• Property ownership
• Timing of bringing funds into the UK

Early planning before arrival can often create significant tax efficiencies and help avoid unexpected UK tax liabilities under the new FIG regime and post-2025 residence-based taxation rules.

At Taxeezy, we regularly support internationally relocating individuals with UK tax planning, residency reviews, and HMRC compliance support before arriving in the UK.

Common Mistakes Non-Doms Should Avoid

One of the biggest mistakes many non-doms make is assuming the old remittance basis rules still apply automatically after April 2025.

Individuals should also avoid making overseas transfers, remittances, asset disposals, or trust restructuring decisions without first understanding the new FIG regime and residence-based taxation rules.

Other common mistakes include:

• Failing to review inheritance tax exposure
• Misunderstanding UK residency tests
• Ignoring offshore reporting obligations
• Delaying professional tax planning until after becoming UK tax resident

Because the new rules are highly dependent on individual circumstances, early advice and proper structuring can help avoid unexpected UK tax liabilities and costly compliance issues.

Why Choose Taxeezy?

The FIG regime marked a major shift in the UK tax landscape for non-domiciled individuals.

While the new system created opportunities for new arrivals to the UK, it also introduced challenges for existing non-doms who previously relied on the remittance basis.

At Taxeezy, we focus on providing practical and personalised support rather than generic tax information.

Why clients choose Taxeezy:

• UK tax specialists
• International tax guidance
• HMRC compliance support
• Complex tax advisory experience
• UK-based support
• Dedicated accountant support
• Fast turnaround times
• Secure document uploads
• 24-hour WhatsApp support
• 5-star rated service

Whether you are relocating to the UK, reviewing offshore structures, or planning around the new FIG regime, our team is here to help you navigate the changing UK tax landscape with confidence.