Non-Dom UK 2026: The 2025 Abolition and the New FIG Regime

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.