The 2025 UK Remittance Overhaul: What Expats, Non-Doms and New Arrivals Must Know
TAX • PLANNING • 2025
Navigating the UK’s New FIG Regime: What Replaces the Remittance Basis in 2025
Summary: The UK’s long-standing remittance basis has effectively been replaced from 6 April 2025 by the Foreign Income and Gains (FIG) regime. New arrivals who have been non-UK resident for 10 years may now bring foreign income and gains to the UK tax-free for four years. Existing non-doms, however, face a very different landscape.
- The FIG regime unlocks tax-free remittances for new arrivers — but only if the 10-year non-residence test is met.
- Many HNW families misunderstand the transition rules and create avoidable UK tax exposure when moving funds.
- Planning early (before becoming UK resident) is critical. Timing and source-segregation still matter.
Context: Who This Applies To
This is written for internationally mobile families, founders, and HNW professionals relocating to the UK. Many are used to the old non-dom regime — the remittance basis — and assume it still works the same way. It does not.
If you have been non-UK resident for at least 10 tax years before arriving, the new FIG regime lets you enjoy tax-free remittances for four years. If you have been away for fewer than 10 years, or you are already UK resident, different transitional rules apply and the exposure can be significant.
Rules & Thresholds (2025)
The key guidance is set out in HMRC’s official FIG guidance and the Residence and FIG Manual.
The FIG regime applies from 6 April 2025. You must:
- Have been non-UK resident for 10 entire tax years prior to becoming UK resident.
- Elect into the FIG regime for up to four consecutive tax years.
- Keep evidence of residency history and sources of funds.
| Planning Route | When It Helps | Tax Exposure | Admin Burden | Notes |
|---|---|---|---|---|
| FIG Regime (2025+) | Strong New arrivers with 10 years non-residence | Tax-free on foreign income and gains brought to the UK | Low | Strict 10-year test; evidence required |
| Transitional Reliefs | Existing non-doms already UK resident | Partial relief; some remittances taxable | Medium | Rules are complex; HMRC scrutiny likely |
| Post-FIG Worldwide Taxation | After the 4-year FIG window | Worldwide income fully taxable | Medium | Requires pre-FIG restructuring |
Real-World Examples
People make decisions based on old rules. The 2025 changes flipped the system, and the gap between expectation and reality is often expensive.
1. The US Tech Executive Moving to London
A Silicon Valley family moved to London after 12 years outside the UK. They assumed remittances would still trigger tax — because that’s how the old non-dom rules worked. Under FIG, their US investment income and gains can now be remitted entirely tax-free for four years. What they needed most was sequencing: ensuring the right funds were moved during the FIG window before UK worldwide taxation resumes.
2. Returning UK Entrepreneur After 7 Years Abroad
A founder returning from Dubai after only seven years non-residence assumed they could access FIG. They cannot. They fall into the transitional rules and face UK tax on most foreign income and gains, including certain offshore trust distributions. Timing the return by even one extra year would have materially changed their position.
3. HNW Family with Long-Standing Offshore Structures
A family with structures in Jersey and Singapore needed to reassess how “clean capital” is defined under FIG. Despite being non-resident for 14 years, their offshore mixing made it difficult to identify origin of funds. FIG can be extremely generous — but only if the source of funds is clear.
Records to Keep (Audit-Ready)
- Bank statements showing origin of funds
- Broker statements for gains, distributions, sales
- Residency evidence for all family members
- Travel records for split-year or tie-breaker analysis
- Source-segregation evidence for offshore accounts
Further Reading and Resources
- Full FIG vs Remittance Basis Guide
- UK–Spain Tax Advice for Expats
- Free PDF – US & UK Taxes For Expats
Read detailed guide Watch explainer video
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If you're relocating to the UK or restructuring offshore assets, a tailored strategy can make the difference between a fully tax-free FIG period and accidental UK tax exposure. We work with HNW families, founders and international professionals.
England & Wales focus. Cross-border advice available (US/UK/Spain).
Action List
- Confirm 10-year non-residence position before arrival
- Map all offshore accounts and identify sources
- Prioritise which funds to remit within the FIG window
- Review transitional rules if you are already UK resident
- Reassess offshore structures before UK worldwide taxation resumes
Disclaimer: This article provides general information and not personalised tax, legal, or investment advice. Rules change and facts matter — seek tailored guidance.
#taxplanning, #expattax, #ukimmigrationtax, #nonDom, #FIGregime
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