RFIG41000 - FIG regime: Introduction
From 6 April 2025, all UK residents are taxed on the arising basis of assessment on their worldwide income and gains. For details of the remittance basis of assessment which was available prior to 6 April 2025 see RDRM31030.
Individuals who come to the UK after a period of at least 10 consecutive tax years of non-UK residence are able to claim UK tax relief on foreign income and gains that accrue during their first 4 years of UK residence.
The regime that provides for these reliefs for qualifying new residents is known as the FIG regime. Individuals with foreign employment income who are eligible for the FIG regime may also be able to claim relief in respect of their foreign employment income; for further details of new Overseas Workday Relief see EIM43550.
What it means to be a ‘qualifying new resident’ and the eligibility criteria is set out at RFIG44000. Although the regime started on 6 April 2025, an individual may already be a qualifying new resident if they came to the UK, or returned to the UK, in the 2022-23 tax year or later. Neither an individual’s nationality, domicile at any time nor their ability to claim the remittance basis in previous years affects eligibility for the FIG regime.
Claims must be made for the reliefs to be available and can be made for the 2025-26 tax year onwards; see RFIG42100 for details on making a claim. RFIG43000 provides guidance on how a claim may impact allowances and other tax reliefs. Most, but not all, types of foreign income and gains are able to be relieved under the regime – see RFIG45100 onwards.
Individuals are not required to bring their tax-relieved foreign income and gains to the UK, and if they choose to, there is no tax liability when they do.
Former remittance basis users who return to the UK after 10 consecutive tax years of non-UK residence and are eligible for the FIG regime cannot claim relief for any foreign income and gains that accrued prior to 6 April 2025 when they were UK resident and using the remittance basis. This is the case whether or not they remit the income and gains within the first 4 years of returning. These individuals may, however, want to use the temporary repatriation facility (TRF) to take advantage of a lower tax rate by designating their pre-6 April 2025 foreign income and gains and paying the TRF charge – see RDRM71000 onwards.