How Much Foreign Income Is Tax-Free in the UK? 2026/27

There is no flat tax-free amount for foreign income. UK residents are taxed on their worldwide income, but new arrivals not UK resident in the prior 10 years can claim relief under the 4-year FIG regime. Small trading or property income under GBP 1,000 needs no report.

How your foreign income is taxed in the UK (2026/27)

Your situation	How your foreign income is taxed in the UK
UK resident, long-term or formerly UK domiciled	You are taxed on your worldwide income, including foreign income, usually through Self Assessment
New arrival eligible for the 4-year FIG regime	You can claim relief on qualifying foreign income and gains that arise in your first 4 years of UK residence, if you were not UK resident in the previous 10 consecutive tax years. The claim must be made each year on your tax return
Non-UK resident	Only your UK-source income is taxed in the UK. Foreign income is not taxed here
Trading or property income under GBP 1,000	Covered by the GBP 1,000 trading allowance and the separate GBP 1,000 property allowance, so it is tax-free and usually need not be reported
Foreign savings interest within the Personal Savings Allowance	Tax-free up to GBP 1,000 (basic rate), GBP 500 (higher rate) or GBP 0 (additional rate)
Foreign dividends within the dividend allowance	Tax-free up to GBP 500 a year; only dividends above this are taxed