Digital Nomad
How the UK’s New Residency-Based FIG Regime Impacts Digital Nomads and Expat Entrepreneurs
From 6 April 2025 the UK replaced the remittance basis with a new 4-year foreign income and gains (FIG) regime — this article explains who it affects, how it works and how to plan.
By NomadicTax Research Team • 6 min read • February 27, 2026
## What’s Changing Under the FIG Regime?
From **6 April 2025**, non-UK domiciled (non-dom) individuals who become UK tax residents will no longer rely on the old remittance basis for foreign income and gains. Instead, they may be eligible for the new **4-year Foreign Income & Gains (FIG)** regime. This provides relief from UK tax on foreign income and gains for the first four tax years after re-settling in the UK following at least 10 years of non-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))
Relief includes the ability to remit funds to the UK without additional tax charges, with simpler record-keeping rules compared to the old remittance basis. However, FIG claimants will lose the **personal allowance** and **Annual Exempt Amount** for capital gains tax. Overseas Workday Relief also continues for up to three years of 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))
## Who’s Affected? Digital Nomads & Long-Stay Expats
- You’ve lived abroad for **10 years or more**, and you’re newly re-resident in the UK.
- You plan to earn income or realise gains overseas, and may remitt funds into the UK.
- You worked overseas before moving back to the UK and want to know how existing foreign income/gains are treated.
## Practical Impacts & Examples
| Scenario | Under Old Remittance Basis | Under New FIG Regime |
|----------|-----------------------------|-------------------------|
| Arrived UK in 2025, with overseas investments accrued | Could exclude foreign gains if not remitted; complex tracking | Under FIG: first four years certain foreign income/gains exempt; foreign gains taxed when realised, but loss of CGT and personal allowance |
**Example:** Sarah lived abroad for 15 years. She returns in May 2025. Under FIG, for tax years 2025-26 through 2028-29, she’s relieved from UK tax on foreign income and gains. From year five, all worldwide income and gains taxable as if UK domiciled. |
## Planning Tips for Digital Nomads
- Consider the timing of becoming UK resident: delaying to after 6 April 2025 brings different rules.
- Understand whether your foreign income/gains derive from taxes in your country of residence and if treaties provide relief.
- Plan remittances carefully: under old basis, remittances trigger tax; under FIG the rules are simpler.
- Use the first four FIG years to make planned sales of overseas assets or investments before FIG expiry.
## Key Caveats
- You lose some UK tax advantages (personal income allowance, CGT exemption) when using FIG.
- Existing assets held before becoming resident could be “rebased” under transitional rules.
- Trusts, beneficiaries and settlors also affected differently—benefits from 6 April 2025 need attention.
## Actionable Steps
1. Determine your planned date of UK residency under the Statutory Residence Test.
2. Review your foreign income and gains history—what gains will you realise?
3. Speak with a tax adviser to model the trade-off: is FIG or full UK taxation more favorable?
4. Track remittances and plan cash flows—especially for bringing in capital.
**Conclusion**: The FIG regime levels the playing field; it simplifies but also removes certain tax benefits. For digital nomads and expats, early planning around the first four years of residency is essential to optimize tax outcomes.