The short answer
Non-dom tax 2026/27: FIG replaced the remittance basis, with claim-based relief for qualifying new residents during their first four UK-residence tax years.
The UK's remittance-basis regime was replaced from 6 April 2025 by the residence-based Foreign Income and Gains (FIG) regime. For Income Tax and CGT, qualifying new residents can claim relief on eligible foreign income and gains during their first four UK-residence tax years if they have had at least 10 consecutive tax years of non-UK residence. A claim can remove UK tax on the claimed foreign income and gains even when the money is brought to the UK, but it is not automatic and it affects certain allowances and reliefs. Model your UK tax position as a new arrival with the Salary Calculator.
This guide explains who qualifies for the FIG exemption, what happens after year four, the transitional rules for former remittance-basis users, and the interaction with the statutory residence test, temporary non-residence and inheritance tax.
4-year FIG exemption
Residence, not domicile
Arising basis after year 4
The Old Remittance Basis (Pre-April 2025)
Before April 2025, a non-domiciled individual could claim the remittance basis: UK income and gains were taxed normally, but foreign income and gains were taxed only if remitted to the UK. Keeping them offshore meant no UK tax. The claim came with costs — a Remittance Basis Charge of £30,000 after 7 of the previous 9 years of residence and £60,000 after 12 of 14, plus the loss of the Personal Allowance. Those historical claims remain valid for the years they covered and HMRC can still enquire into them, but the mechanism itself is gone: you cannot elect the remittance basis for 2026/27 or later.
The New FIG Regime
| Status | Treatment of foreign income and gains |
|---|---|
| New resident, first 4 years | Exempt from UK tax — FIG applies |
| Resident 4+ years | Taxed on arising basis — worldwide income |
| Long-term UK resident (10+ of past 20 years) | Ordinary arising-basis rules; separate IHT scope depends on the long-term residence and chargeable-event rules |
The FIG relief is available only to a qualifying UK resident who is within the first four tax years of UK residence following at least 10 consecutive tax years of non-UK residence. You must make a claim for each tax year and choose the eligible foreign income and gains covered by the claim. Eligible categories include overseas property-business profits, non-UK dividends and interest, certain foreign employment income and foreign gains. Relief means the claimed amounts are not taxed in the UK even if brought here, but a FIG claim generally forfeits the Personal Allowance and the CGT annual exempt amount for that tax year. UK-source income and gains remain taxable under the normal rules.
After the Four Years — and the Transitional Rules
After the four-year period, or for income and gains not covered by a claim, the arising-basis rules generally apply. Losses and reliefs have detailed interaction rules and should not be assumed to carry from a FIG year into a later year. Transitional measures for former remittance-basis users included a limited 5 April 2017 rebasing election for qualifying assets and a 50% reduction for certain foreign income in 2025/26 only; neither creates a general 2026/27 exemption. For IHT from 6 April 2025, the relevant concept is long-term UK residence: broadly, residence in at least 10 of the previous 20 tax years, with a possible 3-to-10-year tail after leaving. This is not the same as saying a person is UK-domiciled.
The Statutory Residence Test and FIG
FIG eligibility sits on top of the Statutory Residence Test (SRT). Only a UK-resident individual can claim, and the four-year period begins with the first tax year of UK residence after the required 10 consecutive tax years of non-residence. If the individual becomes non-resident during the period, the regime cannot be claimed for that non-resident tax year; remaining qualifying years may be available after a return, but unused years cannot be rolled over. Non-residents remain subject to the separate UK-source income and gains rules. Temporary non-residence is a separate regime and can bring specified income or gains into charge on return when its conditions are met.
Worked Example — A New Arrival
Example 1: The four-year claim. Lena moves to London in June 2026, having had at least 10 consecutive tax years of non-UK residence. In 2026/27 she earns £40,000 from a UK employer and £25,000 of dividends from a foreign portfolio. If she is UK-resident and claims FIG relief for the eligible dividends, the claimed dividends are not taxed in the UK, whether she brings them to the UK or leaves them abroad. She must account for the effect of the claim on her Personal Allowance and CGT annual exempt amount. If she remains UK-resident and claims in each eligible year, the period can run from 2026/27 through 2029/30.
| Year | UK salary | Foreign dividends | UK tax on foreign dividends |
|---|---|---|---|
| 2026/27 | £40,000 | £25,000 | £0 on the claimed dividends; Personal Allowance consequences still apply |
| 2030/31 | £40,000 | £25,000 | Normally considered under the arising basis |
Example 2: The long-term resident. Ravi has been UK-resident for 15 of the past 20 years. He owns a villa in Dubai generating £30,000 a year of rent. His foreign rent is generally considered under the arising basis unless a specific relief applies. His IHT position is separately affected by the long-term UK residence rules, including the post-departure tail; the villa is not automatically inside or outside the estate without checking the chargeable event, residence history and any relevant exclusions.
What Counts as Foreign Income and Gains
Eligible FIG categories can include profits of a trade carried on wholly outside the UK, overseas property-business profits, dividends from non-UK companies, foreign interest and certain foreign employment income or gains. The detailed eligibility and calculation rules matter. UK-source income and gains remain taxable under the ordinary rules, and mixed employment duties need careful apportionment. Bringing claimed, tax-relieved FIG to the UK does not itself create a tax charge, but capital, income from different years and remittances outside a valid claim must not be conflated. Common Reporting Standard information exchange does not replace the taxpayer's reporting obligations.
Reporting Under FIG
Claiming FIG is not automatic. Make the claim through the relevant Self Assessment process for each year and retain records supporting residence, the 10-year non-residence history, the chosen income or gains and any employment-duty apportionment. Whether a return is required depends on the person's circumstances and HMRC's filing rules; do not state that every FIG claimant must file every foreign-income page regardless of the facts. Professional advice is sensible for mixed duties, prior remittance-basis years, trusts or complex holdings.
Planning Before You Move
Make the most of the FIG window
- 1Confirm your UK residence under the Statutory Residence Test before relying on any FIG treatment.
- 2Check the required period of at least 10 consecutive tax years of non-UK residence before relying on FIG.
- 3Do not assume a gain is exempt: identify the eligible foreign gain, make the claim and account for the lost allowances and reliefs.
- 4Keep foreign losses and gains records separate, since losses cannot be carried into the arising-basis years.
- 5Review your IHT position if you are already a long-term resident with worldwide assets.
Frequently Asked Questions
Evidence and decision checks
A reliable non dom tax status 2026 27 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.
Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.
Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.
Evidence and decision checks
A reliable non dom tax status 2026 27 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.
Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.
Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.
Retain the mixed-fund schedule and currency method with the return, not only the final remittance figure.
Label each conclusion with its tax year and the enacted rule relied on.
Residence and remittance evidence
Do not use “non-dom” as the calculation. Establish residence for the year, the source and ownership of each income or gain, whether it was remitted, and which enacted or transitional rules apply. Keep travel, accommodation, bank, investment, transfer and foreign-tax records together. A remittance can occur through a benefit or indirect transfer, not only a payment into a UK account.
For mixed funds, maintain a schedule of original capital, income, gains, currencies, transfers and UK expenditure. Distinguish a current statutory regime from an earlier-year claim or a proposal. Trusts, offshore companies, family transfers, IHT and treaty reliefs need separate review. Reconcile the residence analysis to the statutory test before filing.
Residence, domicile and the remittance facts
Do not use “non-dom” as a shortcut for a tax answer. Establish residence for the relevant year, the source and ownership of each income or gain, whether it was remitted, and which transitional or new regime conditions apply. Keep travel, arrival, departure, bank, investment and transfer records together. A remittance can occur through more than a direct transfer to a UK account, so trace the movement and benefit carefully.
Review mixed funds and clean capital claims separately. Keep a schedule of original capital, income, gains, exchange rates, transfers and UK expenditure. Do not claim a special regime because it was available in an earlier year; distinguish enacted rules, transitional protection and proposals. The tax result can also affect IHT, reporting and foreign tax-credit claims.
Before filing, compare the residence analysis with the statutory test and the current HMRC guidance. A professional review is sensible where trusts, offshore companies, family transfers or several currencies are involved.
Is the remittance basis still available in 2026/27?
How long does the FIG exemption last?
Do I need to keep foreign money offshore under FIG?
What happened to the £30,000 and £60,000 charges?
How does FIG interact with inheritance tax?
Can I claim FIG if I was UK-resident briefly in the past?
Do I have to claim FIG every tax year?
Does FIG cover foreign employment income and capital gains?
Check what your UK tax bill will look like as a new or returning resident with the Salary Calculator, then read the Coming to the UK Tax guide and the Foreign Income Reporting guide for the filing requirements that apply alongside FIG.
Official sources
- GOV.UK: four-year foreign income and gains regime
- HMRC: HS266 Foreign Income and Gains regime
- HMRC: Self Assessment residence and remittance pages
- GOV.UK: Inheritance Tax for long-term UK residents
- HMRC: temporary non-residents and Capital Gains Tax
- HMRC: Statutory Residence Test guidance
These GOV.UK and HMRC sources are the official references for the residence, foreign-income-and-gains, inheritance-tax and reporting rules summarised in this guide.
Related Guides
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.
UK Salary Sacrifice Calculator 2026/27 — How to Compare Net Pay
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HMRC Tax Avoidance Lists UK 2026/27 — SRNs and Red Flags
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Review notes and assumptions
Reviewed
2026-09-20
Assumptions
- Eligibility depends on UK residence history, the four-year claim window, foreign income or gains, claims made, allowances surrendered and separate IHT or temporary-non-residence rules.
- This is a high-level planning overview and does not determine a taxpayer's FIG claim, residence or treaty position.