Digital Nomad
Navigating the New UK Non-Dom Regime: What Digital Nomads & Expats Need to Know
As of 6 April 2025 the UK’s non-dom tax regime has been abolished and replaced by a residence-based system—here’s how digital nomads and expats can adapt.
By NomadicTax Research Team • 5-8 min read • April 22, 2026
## What’s Changed Under the New Regime
- The UK abolished the remittance basis from **6 April 2025**. Non-UK-domiciled individuals who are UK residents will be taxed on **foreign income and gains** (FIG) as they arise, unless eligible for transitional/relief regimes. ([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))
- A new **4-year FIG regime** applies for those who qualify (e.g. new UK residents after at least 10 years of non-residence). For those first four years in UK tax residence, their foreign income and gains can be received (brought into the UK) without extra tax under this regime. ([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))
- Transitional measures include rebasing assets to 5 April 2019, a Temporary Repatriation Facility to pay 12% on certain pre-April 2025 income/gains, and a 50% reduction in foreign income taxed in first year for existing non-doms losing the remittance basis. ([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))
## Implications for Digital Nomads & Expats
- **Foreign-sourced work**: If you are earning overseas while residing in the UK, you’ll need to carefully track when FIG is generated and whether you fall under the new 4-year regime. You may avoid UK tax for a period but must comply after that.
- **Trusts and offshore structures**: Settlor-interested trusts and offshore entities previously used for tax deferral or avoidance are now more exposed. From 6 April 2025, figures in such trusts may be taxed as they arise. ([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))
- **Residence test becomes more important**: Your length of UK residence and past non-residence matter greatly. Long absences before arriving help qualify for relief, but after staying more than four years, foreign income/gains are taxed like UK domiciled individuals. ([assets.publishing.service.gov.uk](https://assets.publishing.service.gov.uk/media/65e7920c08eef600155a5617/Published_Costing_Document_Spring_Budget_2024_Final.pdf?utm_source=openai))
## Practical Planning Tips
- Maintain clean records of foreign income and gains, including when they arise, not just remittance dates.
- Plan asset dispositions—if you have capital gains from pre-April 2025 assets, rebasing may reduce tax liability.
- Consider timing travel and residence to control when tax residence begins. For example, delaying becoming UK resident or ensuring 10 years of non-residence before moving in might allow benefit of the 4-year relief.
- Where trust interests or settlor interests are involved, get professional advice about matching rules, onward-gift rules, and how pre-existing Figures are treated.
## Example Scenario
*Maria*, a freelance software developer, has lived outside the UK for 12 years and plans to move to London in June 2025. Under the new rules, she qualifies for the 4-year FIG regime, so from April 2025 to April 2029 she can bring foreign income/gains into the UK without further tax, provided she qualifies. But after four years, any new income/gains outside the UK will be taxed as they arise—same as UK residents.
*Key takeaway*: digital nomads should evaluate where their foreign income arises, plan residency carefully, and use transitional reliefs if available.