The short answer
UK tax for newcomers in 2026/27: residence, the Foreign Income and Gains exemption, split-year treatment and remittance-basis transition.
Moving to the UK for work, study or retirement changes your tax position. Your treatment depends on UK residence under the Statutory Residence Test, where income and gains arise, and any applicable treaty. The 2026/27 rules include the Foreign Income and Gains (FIG) regime, which replaced the remittance basis from 6 April 2025 for qualifying new residents. Domicile is no longer the general gateway for income-tax and CGT treatment, although specialist rules still matter.
New arrivals who were non-UK resident for at least 10 consecutive tax years can claim relief on qualifying foreign income and gains for up to their first four UK tax years, and can bring claimed amounts into the UK without a remittance charge. The relief is not automatic and does not cover every category of foreign income. Estimate your UK take-home pay with the Salary Calculator, and see how overseas income interacts with your new position.
183 days makes you automatically resident
FIG relief covers up to 4 years
Split-year avoids taxing pre-arrival income
The Statutory Residence Test
The SRT works through automatic overseas tests, automatic UK tests and, if needed, the sufficient-ties test. The day thresholds depend on residence in the previous three tax years: fewer than 16 UK days can be an automatic overseas test for someone previously resident, while fewer than 46 days can apply where they were not resident in any of those three years. A separate full-time overseas-work test has its own UK-day and UK-workday limits. The automatic UK tests include 183 or more UK days, a qualifying UK home, or full-time UK work across 365 days. If none applies, family, accommodation, work and day-count ties are assessed.
| UK days in the tax year | Likely status |
|---|---|
| Under 16 | May meet an automatic overseas test if the relevant previous-residence condition is met |
| 16–45 | Depends on previous residence and the other SRT tests |
| 46–90 | Depends on the automatic tests and sufficient ties |
| 91–182 | Depends on the automatic tests and sufficient ties |
| 183+ | Automatic UK residence test is met |
Day counting uses the midnight rule: a day counts if you are in the UK at the end of the day. Transit days do not count, and up to 60 days of exceptional circumstances can be disregarded.
The FIG 4-Year Exemption
From 6 April 2025, the Foreign Income and Gains regime replaced the remittance basis. If you are UK resident and this is within your first four years after at least 10 consecutive tax years of non-UK residence, you can claim relief on qualifying foreign income and gains. Not every category qualifies: for example, foreign employment income may instead need Overseas Workday Relief. A claim is made on Self Assessment, source by source; claimed amounts can be brought to the UK without a remittance charge, but the claim is not automatic.
| Feature | FIG exemption |
|---|---|
| Qualification | UK resident within first 4 years after at least 10 consecutive tax years non-UK resident |
| Duration | First 4 tax years of UK residence |
| Qualifying foreign income and gains | Relieved if claimed |
| Bring money to the UK | Allowed, no remittance charge |
| Claim | Must be claimed on your tax return |
| Year 5 onwards | Arising basis generally applies to worldwide income and gains |
From year five, the arising basis generally applies. A FIG claim also removes the personal allowance and CGT annual exempt amount for the year, and can affect other allowances; compare the saving with those costs before claiming. The old remittance basis is not a route for new arrivals from 6 April 2025, although transitional rules can matter for earlier years and former users.
Split-Year Treatment
Moving mid-year does not automatically trigger split-year treatment. If you are UK resident for the tax year and meet one of the statutory split-year cases, the tax year is divided into an overseas part and a UK part at the case-specific date. The relevant case must be checked against the detailed SRT conditions; the split point is not always the day you arrive. UK-source income and foreign income or gains are then considered under the rules for the relevant part, including any FIG claim.
| Topic | Practical rule |
|---|---|
| Eligibility | You must be UK resident for the year and meet one of the statutory split-year cases |
| Split point | Depends on the case and the relevant statutory conditions; it is not automatically the arrival date |
| Claim | Report the position through the residence pages of Self Assessment where required |
| Evidence | Keep travel, work, home and contract records supporting the case |
Domicile and What It Means
Domicile is a common-law concept about a person's permanent home, but the old domicile/deemed-domicile gateway is no longer the general test for income tax and CGT from 6 April 2025. For Inheritance Tax, the relevant modern concept is long-term UK residence: broadly, UK residence for at least 10 of the previous 20 tax years, with tail rules after departure. A person who is not long-term UK resident may still need to consider UK assets, trusts, treaties and other special rules. A newcomer can qualify for FIG based on residence history, regardless of domicile, but this does not remove the need for specialist IHT advice.
Worked Example: Moving from the US in July
The facts. Maya moves from the US on 15 July 2026, starts UK employment on 1 August 2026, and spends about 265 days in the UK by 5 April 2027. She earns $60,000 (£48,000) pre-move in the US and £50,000 in the UK, with $5,000 (£4,000) of US dividends.
| Test | Result |
|---|---|
| 183-day rule | 265 days → automatically UK resident |
| Split-year | Only if a statutory split-year case is met; the split point must be determined from the facts |
| FIG exemption | Potentially qualifies if she was non-UK resident for at least 10 consecutive tax years and claims relief |
Tax position. Her pre-arrival US employment income is considered under the pre-arrival and treaty rules, not automatically as FIG-relieved income. Her post-arrival US dividends and any qualifying foreign gain could be claimed under FIG if she meets the qualifying-resident test, makes the claim, and accepts the loss of relevant allowances. Her UK salary from August is taxed in the normal way. The exact split point and treaty position need the actual travel and work facts.
| Income | Treatment |
|---|---|
| US salary (Jan–Jul) | Pre-arrival/treaty analysis; not automatically FIG |
| UK salary (Aug–Apr) | Taxable in the UK |
| US dividends after arrival | Potentially qualifying FIG income if claimed |
| US capital gains after arrival | Potentially qualifying FIG gains if claimed |
Sort your tax position as a newcomer
- 1Record your arrival date and every UK day — the 183-day and midnight rules decide residence.
- 2Check the FIG regime: were you non-UK resident for at least 10 consecutive tax years?
- 3Claim the FIG exemption on your Self Assessment return — it is not automatic.
- 4Check whether a statutory split-year case applies; do not assume the split starts on arrival.
- 5Register for Self Assessment where required, and keep overseas income, gain, travel and work records for the claim window.
Practical First Steps
Start before you land. Keep a diary of UK arrival and departure dates from day one — the midnight rule makes every day count. If you are an employee, tell your employer your arrival date and National Insurance number so PAYE starts correctly. If you have overseas income, pensions or assets, gather the year-by-year records now because a FIG claim is source-specific and HMRC can ask for supporting evidence. Consider whether your move qualifies for split-year treatment under the statutory cases and note the split date. Finally, decide whether you need to register for Self Assessment: most new arrivals with UK employment only are handled through PAYE, but anyone with untaxed overseas income, gains or rental income must register by 5 October after the end of the tax year.
Evidence for a residence and FIG review
Keep travel records, boarding passes, work contracts, payslips, tenancy agreements, utility records and evidence of where your home and family were located. A calendar showing only workdays may miss the SRT midnight rule and non-work UK days. For foreign income and gains, keep broker statements, bank records, dividend vouchers, pension statements, exchange-rate evidence and the date each amount arose or was brought to the UK. Separate pre-arrival amounts from post-arrival amounts and do not assume that money moved between accounts has one tax character.
Before making a FIG election, compare the relief with the personal allowance and CGT annual exempt amount that may be lost. Record each source included in the claim, the amount relieved and any source excluded because a special rule applies. If a treaty, foreign tax credit, Overseas Workday Relief or trust is involved, keep that analysis separately. A relocation package may include shares, bonuses, accommodation or foreign payroll, so ask the employer for the relevant tax documents rather than treating all compensation as ordinary UK salary.
Keep a copy of the submitted return and the exact FIG election for each tax year.
Store it with your residence records.
Frequently Asked Questions
How many days can I be in the UK without becoming resident?
What is the FIG 4-year exemption?
How does split-year treatment work when moving to the UK?
What is the difference between residence and domicile?
Do I pay UK tax on my foreign pension after moving here?
Can I still use the remittance basis?
What happens if I do not claim the FIG exemption?
Do I need Self Assessment to claim the FIG exemption?
Build a residence and FIG evidence file
Create a day-by-day residence timeline for the tax year, including arrival date, accommodation, workdays, family ties, travel outside the UK and any split-year event. Keep the evidence used to apply the Statutory Residence Test rather than relying on a calendar summary. Separately list each foreign receipt or gain, the date it arose, currency, source, tax withheld, remittance and whether it is included in a FIG claim. A bank transfer into the UK is not the same thing as the income arising, so preserve both timelines.
Before electing for FIG, compare the claim with the ordinary arising-basis result. Record the prior ten tax years of residence, eligible sources, excluded amounts, lost allowances and any treaty position. If the claim is made through Self Assessment, retain the working paper that reconciles the figures to bank statements, broker reports, pension certificates and foreign tax documents. Recheck the analysis when the taxpayer returns, changes work location or receives a payment connected with an earlier year.
Estimate your UK take-home pay with the Salary Calculator and check your reporting obligations with the Self Assessment Calculator. Pair this guide with Leaving the UK Tax 2026/27 and Working Abroad Double Taxation 2026/27 for the full cross-border picture.
Official sources
Related Guides
Leaving the UK Tax 2026/27 — Residence & Split Year
Tax when you leave the UK in 2026/27: the Statutory Residence Test, split-year treatment, temporary non-residence and what UK income remains taxable after you leave.
Foreign Income Reporting 2026/27 — SA106 & Tax Credits
How to report foreign income on 2026/27 Self Assessment: employment, pensions, dividends, interest, remittance basis and foreign tax credits.
The 60% Tax Trap 2026/27 | How It Works & How to Avoid It
Why UK earners between £100,000 and £125,140 face a 60% effective marginal rate, and how pension contributions can restore the Personal Allowance.
Review notes and assumptions
Reviewed
2026-09-20
Assumptions
- Residence and relief eligibility depend on the Statutory Residence Test, prior residence history, income and gains, treaty position and the exact tax year facts.
- The guide is an orientation to published HMRC rules and does not determine UK residence, treaty residence or a claim to the FIG regime.