Digital Nomad
Navigating the New Foreign Income & Gains Regime: A Digital Nomad’s UK Tax Playbook
From 6 April 2025, the remittance-based non-dom system ends. For digital nomads relocating to the UK, a new four-year foreign income & gains (FIG) regime offers simplified reliefs—but only if you meet key criteria.
By NomadicTax Research Team • 6 min read • November 22, 2025
## What’s Changed for Non-UK Domiciled Individuals
From **6 April 2025**, UK tax law shifts from domicile-based rules to a **residence-based Foreign Income & Gains (FIG) regime**, so new arrivals and former non-UK residents are affected. The remittance basis is abolished. ([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 Qualifies for the 4-Year FIG Regime
You’ll need to meet all of these:
- Be **tax resident in the UK** as of now (or arriving) after a period of **10 consecutive years 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))
- Make the UK your tax base for income, meaning most of your foreign income & gains are eligible for relief.
- Opt into the FIG regime (you must make a claim for each tax year you want to be covered). ([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))
## Benefits & Constraints: The Rules You Should Know
**Benefits:**
- FIG regime gives **tax exemption on foreign income & capital gains** for *first four tax years* after establishing UK residence (following the 10-year non-residence period). ([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))
- Easier administration: removal of remittance tracking and fewer complications with trusts. ([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))
**Constraints:**
- If you **don’t qualify**, you’ll be taxed on worldwide income & gains *as they arise*, no relief. ([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), if eligible, lasts for **first 3 years** of UK residence (for those under FIG). For those not eligible, it may not apply. ([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 Temporary Repatriation Facility (TRF) offers reduced tax (12% for 2025-26 / 2026-27) on remittances of foreign income & gains arising under the old regimes—but only for certain cases. ([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))
## Practical Scenarios for Digital Nomads
| Scenario | Qualifies for FIG? | Tax Implications | Tips to Position Yourself Well |
|---|---|---|---|
| Moving to the UK in 2025 after 10 years abroad with foreign investments | Yes | Foreign income & gains for first 4 years exempt; you’ll pay UK income tax on UK-source income; trusts/shares abroad taxed less strictly | Keep foreign assets outside trust structures; prepare claims early; track UK arrival date closely |
| Already UK resident under old regime but used remittance basis | Partially | Pre-6 April 2025 remittances taxed under old regime; new FIG governs post-6 April income/gains; TRF may reduce the rate on certain remitted pre-change income | Calculate cost of remaining under old rules; consult with tax advisors to evaluate TRF eligibility |
| Remote worker splitting time UK / abroad | Depends on residence status | Taxation depends on how many days in UK; where income is earned; use of OWR if eligible | Maintain strong records of where duties performed; plan to maximize reliefs in early years |
## Action Steps to Stay Compliant & Optimise
1. **Establish and document your UK residence date and non-UK residence history**. Every day matters toward qualifying.
2. **Decide early whether you’ll claim FIG**, setting out whether you meet the 10-year non-residence condition.
3. **Assess your foreign income & gains**, and whether to repatriate them under TRF at 12% (if eligible) before rates change.
4. **Review your use of trusts**: under the new rules, previous protections for settlor / trusts will be curtailed. ([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))
5. **Track overseas workdays**: to qualify for OWR you’ll need clear proof of days worked outside UK.
6. **Consult tax advisors**, especially if moving before or around 6 April 2025—transitional reliefs and exemptions could be critical.
## Final Thoughts
The reformed FIG regime simplifies taxation for mobile individuals and eliminates domicile-based complexities. But the **qualifying criteria**, **timing**, and **structure of income/assets** will determine how favorable it is. For digital nomads, early preparation around residence status and foreign income is key to making the most of these changes.