Benefits and Pitfalls of the Non-Dom Fig Regime
The UK's new foreign income and gains regime, which replaced the remittance basis for non-UK domiciled individuals on April 6, 2025, offers benefits and pitfalls.
The previous remittance basis regime allowed non-doms to shelter their foreign income and gains from UK tax if not remitted to the UK.
The new Fig regime provides relief from UK tax on foreign income and gains for the first four tax years of UK residence, but only for individuals who have been non-UK resident for the previous 10 consecutive tax years.
A key difference between the two regimes is that under the Fig regime, foreign income and gains can be brought into the UK to be held, spent, or invested.
While many lamented the end of the remittance basis, the new Fig regime still offers favourable tax benefits, albeit for a shorter period than the previous regime.
- Available to individuals arriving in the UK who have been non-UK resident for 10 consecutive tax years.
- Relief from UK tax on foreign income and gains for the first four tax years of UK residence.
- Foreign income and gains can be brought into the UK.
Author's summary: New Fig regime offers favourable tax benefits for non-doms in the UK.