Digital Nomad
How the Removal of the Remittance Basis Affects UK Digital Nomads from April 2025
If you're a non-UK domiciled individual or digital nomad, from the 2025-26 tax year the remittance basis ends—here’s how to plan around qualifying new resident relief and the effects of long-term UK resident status.
By NomadicTax Research Team • 5-8 min read • November 18, 2025
## What’s Changing from April 2025
Under the Finance Act 2025, the **remittance basis** of taxation for individuals who are non-UK domiciled will be **ended** for the tax year **2025-26** and onwards. This means you can no longer choose to be taxed only on foreign income and gains you bring into the UK. Instead, the UK is **replacing domicile-based rules** with a system based on **residence**. ([legislation.gov.uk](https://www.legislation.gov.uk/ukpga/2025/8/body?utm_source=openai))
Specifically, the Act establishes:
- A new “qualifying new resident” status, allowing some relief on **foreign income and gains** for up to **4 UK tax years** if you meet certain criteria following a period of non-UK residence. ([gov.uk](https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances?utm_source=openai))
- Definition of “long-term UK resident” to apply in many areas, including inheritance and income tax. Being a long-term resident generally means you've been UK resident for at least 10 of the previous 20 years. ([legislation.gov.uk](https://www.legislation.gov.uk/ukpga/2025/8/body?utm_source=openai))
## Implications for Digital Nomads
| Scenario | Before April 2025 | From April 2025 Onwards |
|---|---|---|
| Non-UK domiciled nomad arriving in UK | Could opt for remittance basis | Remittance basis removed; relief only via qualifying new resident status |
| Bringing in foreign income/gains | Only taxed when remitted if remittance basis claimed | Foreign income/gains taxed when arises if resident, minus reliefs |
| Inheritance/Inheritances (outside UK) | Often treated differently due to non-dom status | Long-term UK resident status affects IHT treatment |
## How to Plan Ahead (Actionable Tips)
1. **Assess your eligibility** for the new “qualifying new resident” relief. If you’ve been non-UK resident for at least **10 years**, you might benefit.
2. **Consider timing of moves or arrival** to UK. Arriving just before a tax year end could reduce the years in which you won’t benefit.
3. **Track your residential status carefully** as the new rules on long-term UK residence will be applied heavily in inheritance and taxation of foreign income/gains. Avoid continuously accumulating UK residence without strategic planning.
4. **Review offshore trusts or structures**: These may be treated differently under the new rules when domicile is no longer a core factor.
5. **Seek expert advice** for cross-border contracts and foreign investments, particularly if you’d previously relied heavily on remittance basis.
## Example Case Study
*Maria*, a freelance consultant, spent 12 years abroad and is now moving to the UK for work. Under the new regime, she meets the criteria for **qualifying new resident** and thus for her first four UK residential tax years (2025-26 to 2028-29) she can claim relief on qualifying foreign income. After that, unless she avoids becoming a long-term UK resident, she'll lose these benefits. Planning her UK arrival and documenting non-UK residence becomes crucial.
## Key Takeaways
- Remittance basis ends after **tax year 2024-25**—no longer available. ([legislation.gov.uk](https://www.legislation.gov.uk/ukpga/2025/8/body?utm_source=openai))
- “Qualifying new resident” relief provides partial protection for up to **4 tax years**. ([gov.uk](https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances?utm_source=openai))
- Long-term UK resident status becomes important, especially for inheritance or property outside the UK.
- Digital nomads must re-evaluate structuring of income and foreign investments.
Make sure any move or planning considers these dates, to retain maximum relief under the new residence-based tax rules.