Sarah Bradford explores the four-year FIG regime available to new UK residents.
The remittance basis of taxation, under which non-domiciled UK residents could elect only to be taxed on foreign income and gains to the extent to which they were remitted to the UK in return for the payment of a fee, came to an end on 5 April 2025. A new residence-based regime now applies, under which domicile is irrelevant and UK residents are taxed on their worldwide income on an arising basis, wherever it originated and regardless of whether it is remitted to the UK.
However, a four-year foreign income and gains (FIG) regime provides relief from UK tax for new arrivals to the UK. A temporary repatriation facility is also available, which allows UK residents who were previously taxed under the remittance basis to remit foreign income and gains to the UK at a favourable tax rate.
