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)
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)
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
- Determine your planned date of UK residency under the Statutory Residence Test.
- Review your foreign income and gains history—what gains will you realise?
- Speak with a tax adviser to model the trade-off: is FIG or full UK taxation more favorable?
- 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.