If you live in the UK but consider another country your permanent home, you’re likely classed as a non-UK domiciled individual (non-dom). The way non-doms are taxed is about to change significantly, with one of the biggest reforms seen in decades.
According to Mike at GoSimpleTax, from 6 April, the concept of “domicile” will be removed from the UK tax system altogether. In its place, a new residence-based approach will determine how foreign income and gains are taxed. This marks a major shift in how Self Assessment returns are completed and how relief is claimed.
In this guide, we’ll cover:
- What’s changing and why it matters
- The new Foreign Income and Gains regime
- Opportunities to reduce your tax liability
- Key things to be aware of
- How GoSimpleTax supports you through the changes
What’s changing?
Historically, non-doms could use the SA109 (Residence and Remittance Basis) pages to ensure foreign income was only taxed if it was brought into the UK.
Under the new rules:
- The SA109 will no longer be the main route for claiming relief on foreign income
- Most UK residents will now need to complete the SA106 (Foreign Income) pages
- Tax will apply on an “arising basis”, meaning worldwide income must be reported as it is earned, regardless of whether it is brought into the UK
- If eligible for the new Foreign Income and Gains (FIG) regime, relief will be claimed directly within the SA106
The new Foreign Income and Gains (FIG) regime
The FIG regime replaces the remittance basis with a simpler, time-limited system.
Who is eligible?
Individuals who become UK residents after being non-resident for at least 10 consecutive tax years.
What are the benefits?
- No UK tax on foreign income and gains for the first four years of UK residence
- Greater flexibility, as funds can be brought into the UK without triggering a tax charge
If you were already UK resident before 6 April, you may still qualify but only for any remaining years within your initial four-year period, provided you meet the 10-year non-residency requirement.
Can you reduce your tax?
There may be an opportunity if you have foreign income or gains from earlier years that haven’t yet been brought into the UK.
The Temporary Repatriation Facility (TRF) allows you to remit these funds at a reduced tax rate for a limited time:
- 2025/26 and 2026/27: 12% flat rate
- 2027/28: 15% flat rate
After this period, previously unremitted income could be taxed at standard marginal rates, potentially up to 45%, so timing is key.
Things to note
- Check your residency history
To qualify for the FIG regime, you must have been non-UK resident for 10 consecutive tax years before becoming UK resident. - Full disclosure is required
Even if income is eligible for relief, it still needs to be reported in full on the SA106 to claim that relief correctly. - Loss of allowances
Claiming FIG relief means giving up your Personal Allowance and Capital Gains Tax Annual Exempt Amount, similar to the previous remittance basis rules. - Capital gains rebasing
If you previously used the remittance basis and held foreign assets as of 5 April 2017, you may be able to rebase their value, potentially reducing future gains.