Digital Nomad
Digital Nomads in the UK: Post-Domicile Tax Changes From April 2025 Explained
Big changes are coming for UK non-domiciled individuals — find out how the new regime works, how Overseas Workday Relief is affected, and what active steps you can take as a digital nomad.
By NomadicTax Research Team • 5-8 min read • November 22, 2025
## What’s Changing for Non-UK Domiciled Individuals From 6 April 2025
The UK is ending the remittance basis of taxation, replacing it with a **4-year Foreign Income & Gains (FIG)** regime for individuals who become UK resident after at least ten years of non-UK residence. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai)) From 6 April 2025, FIG includes:
- Exemption from UK tax on foreign income and gains for the first **four tax years after becoming resident**, provided you meet eligibility criteria. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai))
- Taxation on UK income and gains as before. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai))
- Overseas Workday Relief (OWR) being retained but simplified, eligibility will depend on residence status and whether you opt into the FIG regime. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai))
## What this Means for Digital Nomads
If you're a digital nomad preparing to move or recently moved to the UK, here's what you need to watch for:
| Scenario | Old System | New System (From 6 April 2025) |
|---|---|---|
| Move to UK after 10 years of non-residence | Could apply remittance basis indefinitely (or paid charge) | Eligible for FIG regime: first 4 years foreign income/gains exempt if criteria met. Once FIG ends, taxed on worldwide income/gains. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai)) |
| Undeclared overseas trust distributions | Remittance basis and complex trust rules | Protection removed unless you qualify for FIG. Trust distributions taxed on arising basis for certain settlors/transferors resident >4 years. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai)) |
## Actionable Steps and Planning Tips
1. **Assess your eligibility**: Are you UK resident after >10 years non-residence? If yes, the FIG regime may bring relief for first four years.
2. **Document income and gains**: Maintain records of foreign income and gains before relocation—especially if via trusts. You may need to elect to rebase certain assets to their value as at 5 April 2019. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai)).
3. **Consider timing of bringing money to the UK**: Under FIG, foreign income/gains allowed in without extra charges in first 4 years, which could reduce costs related to remittances.
4. **Monitor changes in relief and trust rules**: If you have interest in non-resident trusts, new rules may affect how distributions are taxed. Consult legal/tax advisor regarding settlements or trusts abroad.
5. **File Self Assessment correctly**: Since April 2025, the tax year you become resident is critical. You must indicate which regime you opt into. Use guidance HMRC publishes and stay ahead of deadlines.
## Example Case
John is a software consultant living abroad for 12 years. He moves to the UK in May 2025 and becomes UK tax resident. Under the new rules:
- Year 2025-26 to 2028-29: foreign income and gains are **exempt**, assuming criteria met (FIG regime).
- If he received trust distributions from a non-resident trust after 6 April 2025, those would be taxed on the arising basis unless he qualifies under FIG and the trust falls into the new rules. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai))
If John had remained outside FIG eligibility, he might have been subject to remittance basis taxation previously, which often involved complications and charges.
## Key Takeaways
- The remittance basis is **abolished** from 6 April 2025 for most non-domiciled residents. FIG regime becomes core for eligible.
- First four years of foreign income/gains under FIG may be exempt if conditions met.
- Trust distributions and protection are changing significantly.
Digital nomads considering UK residence need to re-evaluate their financial and trust structures before April 2025. Proactive planning could save years of extra tax and compliance headaches.