Non-Dom UK 2026: The 2025 Abolition and the New FIG Regime
Quick answer
The UK non-dom regime was abolished on 6 April 2025. The domicile-based remittance basis was replaced with a residence-based system. New arrivals who were non-UK resident for the previous 10 years can claim the 4-year foreign income and gains (FIG) regime, then pay UK tax on worldwide income and gains like any resident.
Non-dom rules before and after 6 April 2025
| Feature | Old regime (pre-6 April 2025) | New regime (from 6 April 2025) |
|---|---|---|
| Basis of taxation | Domicile-based. Non-domiciled residents could elect the remittance basis, so foreign income and gains were only taxed if brought (remitted) to the UK. | Residence-based. UK residents are taxed on worldwide income and gains, with time-limited relief for qualifying new arrivals. |
| Who got relief on foreign income and gains | Anyone UK resident but non-UK domiciled who claimed the remittance basis. | Qualifying new residents only: those who were non-UK resident for all of the previous 10 tax years. |
| How long relief lasts | Potentially for as long as the person stayed non-domiciled, subject to the remittance basis charge once long-resident. | The first 4 consecutive tax years of UK residence. A claim must be made for each year you want relief. |
| Charge to access relief | Remittance Basis Charge: GBP 30,000 once resident 7 of the previous 9 years, rising to GBP 60,000 once resident 12 of the previous 14 years. | No charge. FIG relief is free but must be claimed on the Self Assessment return, and counts as taxable income for some purposes. |
| Inheritance Tax scope test | Based on domicile and deemed domicile (deemed UK domiciled after 15 of the previous 20 tax years). | Based on long-term UK residence: worldwide assets are in IHT scope once resident for at least 10 of the previous 20 tax years. |
| Overseas Workday Relief | Available for the first 3 tax years of UK residence, linked to the remittance basis, with no financial cap. | Extended to the first 4 tax years, capped at the lower of 30% of qualifying employment income or GBP 300,000 a year. |
| Repatriating older foreign income and gains | Taxed at normal Income Tax or Capital Gains Tax rates when remitted to the UK. | Temporary Repatriation Facility: designate pre-6 April 2025 amounts at 12% for 2025-26 and 2026-27, then 15% for 2027-28. |
For decades the UK taxed people partly on where they were domiciled, a concept rooted in long-term family home rather than day-to-day residence. A UK resident who was non-domiciled (a "non-dom") could claim the remittance basis, meaning their foreign income and gains escaped UK tax unless the money was brought into the country. That whole system was abolished on 6 April 2025 and replaced with one based purely on residence. The table above sets out what changed, line by line.
The headline replacement is the 4-year foreign income and gains (FIG) regime. It is open only to people who arrive after at least 10 tax years of being non-UK resident, and it shelters their foreign income and gains for their first 4 tax years here. Relief is claimed each year on the Self Assessment return and can be remitted to the UK with no further charge. After the four years end, the person is taxed on worldwide income and gains like any other UK resident. Two transitional tools sit alongside it: the Temporary Repatriation Facility, which lets people clear older unremitted foreign income and gains at a reduced rate of 12% or 15%, and the extended, capped version of Overseas Workday Relief.
Inheritance Tax moved onto the same residence footing. The old domicile and deemed-domicile tests were replaced by a "long-term UK resident" test: worldwide assets come into IHT scope once someone has been resident for at least 10 of the previous 20 tax years.
Whether any of this applies starts with your residence status, set by the Statutory Residence Test - begin with the pillar, UK tax residency explained. From there, how much foreign income is tax-free in the UK and UK non-resident tax rules cover the income side, am I still UK resident if I live abroad tests the boundary, and taking a UK pension when moving abroad handles retirement income across borders.
Frequently asked questions
Has non-dom status been abolished?
Yes. The concept of domicile was removed from the UK tax system from 6 April 2025. The remittance basis that non-domiciled residents used was abolished and replaced with a residence-based system.
What replaced the non-dom regime?
A residence-based system. UK residents are now taxed on worldwide income and gains. The main relief is the 4-year foreign income and gains (FIG) regime for new arrivals, alongside the Temporary Repatriation Facility for older unremitted amounts and a residence-based Inheritance Tax test.
What is the 4-year FIG regime?
It lets qualifying new residents avoid UK tax on their foreign income and gains for their first 4 consecutive tax years of UK residence. You claim it on your Self Assessment return, can choose which income or gains to claim for, and can remit the relieved amounts to the UK with no further tax.
Who qualifies for the new foreign income and gains regime?
You must be UK resident under the Statutory Residence Test and have been non-UK resident for all of the previous 10 tax years. The relief is then available for up to 4 consecutive tax years from the year your UK residence begins.
When are foreign assets caught by UK Inheritance Tax now?
Your worldwide assets fall within UK Inheritance Tax once you are a long-term UK resident, broadly meaning resident for at least 10 of the previous 20 tax years. After leaving the UK you can remain in scope for between 3 and 10 years depending on how long you were resident.
Sources
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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.