Foreign Income and Gains (FIG) Regime: From 6 April 2025
10th July 2026
What is the Foreign Income and Gains (FIG) regime?
The 2024 Spring Budget stated there would be changes to the domicile-based system of taxation from 6 April 2025 . From this date, the Remittance Basis was abolished, and a new approach adopted based on residence. We now know this to be the FIG regime.
This regime is predominantly aimed at the first 4 years of UK tax residence after a period of 10 consecutive years of non-UK residence. In this instance, an individual can make a claim for relief under the FIG regime over qualifying income sources and chargeable gains, on which they won’t pay UK tax. A claim will impact their entitlement to tax-free allowances such as the Personal Allowance or the CGT Annual Exempt Amount etc. Tax-relieved foreign income and gains can then be brought into the UK free from a tax charge. However, there is no requirement for this. To make use of this tax relief, subsequent claims must be made under the FIG regime in each applicable year.
Transitional Rules
We had expected a separate set of rules to apply in the transitional period for UK residents of more than 4 years who were using the Remittance Basis. It has been confirmed that this won’t be the case for foreign income.
For foreign gains, it seems that individuals who have claimed the remittance basis between 2017/18 and 2024/25 will, on a disposal of an asset held personally on 5 April 2019, be able to elect to rebase that asset to its value as at that date.
Additionally from 6 April 2025, former Remittance Basis users may now be able to utilise the Temporary Repatriation Facility (TRF) in 2025/26, 2026/27, and 2027/28 to remit pre-6 April 2025 foreign income and gains with the benefit of a lower tax rate.
Making a Claim Under the FIG Regime
Claims for relief over qualifying Foreign Income or Foreign Gains should be included within individuals’ Self-Assessment tax returns. The deadline to make claims is the anniversary of 31 January following the end of the relevant tax year. E.g. To make a claim for 6 April 2025 to 5 April 2026 (2025/26), the time limit is 31 January 2028.
Need advice or guidance on the FIG regime?
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Disclaimer - All information in this post was correct at time of writing.
