What Is the FIG Regime? UK Tax for New Residents Explained (2026)

Short answer: The FIG regime is the UK's four-year tax exemption for people who become UK resident after at least ten years abroad. As at 9 August 2026, qualifying new residents pay no UK tax on their foreign income and gains for their first four tax years of residence — whether or not the money is brought to the UK. After four years, they are taxed on worldwide income and gains on the arising basis.

Why the FIG regime exists

The FIG regime replaced the old non-dom (remittance) basis, which was abolished from 6 April 2025. Under the old rules, non-UK-domiciled individuals paid UK tax only on foreign income and gains that they brought (remitted) into the UK. That regime is gone — everyone resident in the UK is now taxed on the arising basis, with the FIG regime as the only relief for genuinely new arrivals.

Who qualifies for the FIG regime?

You qualify if, in the tax year:

• you become (or are) UK resident, and
• you were not UK resident in any of the previous ten tax years.

If you were UK resident in the prior ten years, you do not qualify and are taxed on worldwide income and gains immediately.

What is exempt?

During the four FIG years, foreign income and foreign capital gains are exempt from UK tax — even if remitted to the UK. This is broader than the old remittance basis, which taxed remitted funds.

UK-source income (such as a UK salary or UK rental income) is taxed normally throughout.

Transitional provisions for existing non-doms

Individuals who lost access to the remittance basis on 6 April 2025 benefit from:

• a 50% relief on foreign income for 2025-26, and
• a two-year temporary repatriation facility (TRF) allowing previously unremitted foreign income and gains to be brought to the UK at a 12% rate in 2025-26 and 2026-27.

Practical example

A US executive moves to London in August 2026, having lived outside the UK for twelve years. She qualifies for the FIG regime for 2026-27 through 2029-30. Her US dividends, US bank interest and gains on US shares are not taxed in the UK during those four years, even if she transfers the money to a UK account. In 2030-31, her fifth year, the exemption ends and her worldwide income and gains are taxed in the UK — with credit for any US tax under the UK–US double taxation treaty.

Legislation

The abolition of the non-dom regime and the FIG regime were enacted in Finance (No. 2) Act 2024, taking effect from 6 April 2025. UK residence is determined by the Statutory Residence Test in Finance Act 2013, Schedule 45. Double taxation relief is under TIOPA 2010 Part 2.

How Newshams can help

Newshams Tax Advisers advises internationally mobile individuals on FIG eligibility, the Statutory Residence Test, split-year treatment and pre-arrival planning. We coordinate with US tax advisers and other foreign counsel. Contact us on +44 (0) 800 211 8657 or enquiries@newshams.com.