Digital Nomad
Digital-Nomad-Friendly UK: What International Movers Need to Know Post-Budget 2025
With recent reforms to the residence-based taxation regime, non-doms and international professionals need a fresh playbook when considering UK moves—here’s what has changed and how to plan.
By NomadicTax Research Team • 5-8 min read • June 9, 2026
## What changed for internationally mobile individuals
The UK government replaced much of the **non-domicile (non-dom)** tax framework with a **residence-based tax regime** from **6 April 2025**. Key features include:
- **Residence-based taxation**: UK residents are taxed on worldwide income and gains, with some reliefs depending on residence status. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
- **FIG regime** (Foreign Income & Gains): a temporary mechanism for certain arriving individuals. It remains as originally designed. ([kpmg.com](https://kpmg.com/uk/en/insights/tax/tmd-impact-for-internationally-mobile-individuals.html?utm_source=openai))
- **Trust charges capped**: Relevant property trust charges for former excluded property trusts are capped at **6%** per year. Effective from **6 April 2025**, with roll-forward and grandfathering for many trusts. ([kpmg.com](https://kpmg.com/uk/en/insights/tax/tmd-impact-for-internationally-mobile-individuals.html?utm_source=openai))
- **Inheritance Tax (IHT)**: PETs (Potentially Exempt Transfers), exit charges for former excluded property trusts, etc., have new caps and timings. ([kpmg.com](https://kpmg.com/uk/en/insights/tax/tmd-impact-for-internationally-mobile-individuals.html?utm_source=openai))
## Planning moves and residence transitions
For digital nomads considering relocation to the UK—or switching residence status—consider the following principles:
1. **Examine the date of arrival against behaves of FIG eligibility**. If arriving **from April 2025 onwards**, the residence rules will apply, though FIG might lessen exposure in early years.
2. **Former non-dom status** for trusts: many trusts with “excluded property” before 30 October 2024 benefit from protective caps. Post-that, newer trusts will see standard treatment. ([kpmg.com](https://kpmg.com/uk/en/insights/tax/tmd-impact-for-internationally-mobile-individuals.html?utm_source=openai))
3. **Tax year alignment**: UK tax years run April to April. If arriving mid-year, pro-rata or split residency rules will apply.
4. **Plan property income and savings income timing**: higher rates for dividends take effect **from 6 April 2026**, and property income rates change from **April 2027**. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
## Example scenario
Maria, a software engineer from Canada, plans to move to London in **May 2026**, making her resident for the tax year 2026-27. She will:
- Be taxed on **worldwide income** from that date.
- Possibly elect into the **FIG regime** in her first year, reducing exposure to some foreign income/gains.
- Evaluate any trusts she has—if settled before **October 2024** with excluded property, she may benefit from the 6% IHT cap.
- If she has income from both dividends and property, note that new tax rates apply to dividends from **April 2026**, and property income will see new rates from **April 2027**. This may affect when she realizes income or distributes assets.
## Practical tips for nomads
- **Keep thorough records** of foreign source income and dates overseas residence ended—evidence is key.
- **Assess FIG eligibility**: sometimes it’s elective, depends on arrival, tax history, and domicile background.
- **Plan distributions:** delaying dividends until after rate changes may have cost implications.
- **Consider trust structures before moving**, esp. if you hold or settle trusts with non-UK features; grandfathering may not apply if started after cut-off dates.
- **Seek specialist advice** on non-UK tax treaties, double taxation relief, and foreign tax credits. These often make or break value.
## Conclusion
The UK’s residence-based regime modernizes non-dom policy, but transitions come with complexity. For digital nomads: timing, structure, and compliance matter now more than ever. Planning ahead—and choosing arrival dates, trust settlement dates, income realization with foresight—can preserve value and simplify compliance.