Digital Nomad
How the UK’s New Foreign Income & Gains Regime Changes Digital Nomad Taxes
Starting April 6, 2025, the UK is abolishing the remittance basis and introducing a four-year Foreign Income & Gains (FIG) regime—here’s what digital nomads need to know and how to plan.
By NomadicTax Research Team • 5-8 min read • November 23, 2025
## What’s Changing for 6 April 2025
- The current **remittance basis** for non-UK domiciled individuals ends. No more being taxed only when bringing foreign income or gains into the UK. Individuals will now be taxed on a **worldwide basis**, under the new system. ([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))
- A **4-year FIG regime** will apply to those who become UK tax resident following 10 years of non-UK residence. For those 4 years, foreign income and gains will be **tax-free**, and individuals will be free to bring funds into the UK without extra charges. ([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)** is simplified and made available for the first 3 tax years of UK residence under certain conditions. ([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))
- Non-UK trust distributions, and FIG in non-resident trust structures, will be subject to new taxation rules based on residency rather than domicile, with protections ending for those not eligible under 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))
## Why Digital Nomads Should Pay Attention
- If you become UK resident in 2025 or later and meet the 10-year non-residence threshold, you’ll enjoy 4 years where your foreign income and gains are **arising basis taxed only if you choose a different regime**. This provides transition relief and planning flexibility. ([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 you move before meeting that 10-year rule, you won’t be eligible for the FIG regime—foreign income and gains will be taxed when generated, regardless of where earnings are held. ([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))
- Trust income has had far more risk under the new rules—nomads using trust arrangements to hold assets should review whether the settlor or beneficiaries are impacted due to residency status. ([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 Planning Strategies for Digital Nomads
- **Track your residence carefully.** Knowing when you hit 10 years of non-UK residence is key to eligibility for FIG. Keep travel logs, home registrations, visa dates.
- **Deferred Asset Disposal Strategy.** If holding assets you intend to sell, consider timing disposals to after you enter the FIG regime—those gains may be excluded for a period.
- **Review income location.** Foreign income that qualifies for FIG or arises while non-UK resident may be better held abroad until you enter the regime.
- **Trust checks.** Review who is settlor or transferor, whether trust distributions will be taxed under the new arising basis rules. Impact differs depending on existing vs new trusts.
## Practical Example
Alice has been living outside the UK for 11 years, working remotely. She plans to move to London in May 2025. Since she meets the 10-year non-UK residence requirement, from April 6, 2025, she qualifies under FIG. She has foreign rental income and investments. If she enters UK residence, she'll benefit from tax-free foreign income and gains for her first 4 UK tax years, and she can bring those funds home without extra charges. But as of her fifth year, earnings and gains abroad will be taxed when generated. Planning alternative trust receipts or distributions should be reviewed in the lead up.
## What to Watch Out For
- Post-2028/29 increases in exchequer revenue are expected from many impacted individuals—so there may be future tweaks. ([gov.uk](https://www.gov.uk/government/publications/tax-changes-for-non-uk-domiciled-individuals/reforming-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai))
- Though FIG provides relief, many existing reliefs (e.g. remittance basis, certain trust protections) are being phased out. Those who have relied on them need to re-evaluate.
- Inheritance tax may also shift from domicile-based to residence-based status, subject to consultation. Trust and estate planning should be reviewed. ([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))
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**Key Takeaway:** For digital nomads considering UK residence, the FIG regime offers a transitional window of 4 years of favorable tax treatment if you meet the residence criteria. Align your move, asset disposals, and trust arrangements to maximize benefit and avoid being caught in the arising basis without FIG.
category: Digital Nomad