Regimes: 9
4-year foreign income and gains (FIG) regime
OpenFor people relocating
100% relief on chosen foreign income and gains, even if brought to the UK
Details
- Who
- UK tax residents in their first 4 tax years of residence after at least 10 consecutive tax years of non-residence (from 6 April 2025).
- How it works
- 100% relief on foreign income and gains (dividends, interest, rents, profits of a trade carried on wholly abroad) even if brought to the UK; foreign employment income is not covered (see OWR). Claimed on the Self Assessment return; in claim years the Personal Allowance and the CGT annual exempt amount are lost. Replaces the remittance basis abolished from 6 April 2025.
- Duration
- Up to 4 tax years from the start of UK residence; unused years cannot be carried over
- How to opt in
- Claim in the Self Assessment return for each year; you can choose individual sources. If not yet registered, register by 5 October after the year ends.
- Limits and risks
- In claim years you lose the Personal Allowance and CGT annual exempt amount; foreign employment income is not covered (see OWR); foreign income counts in adjusted net income (affects childcare support and the High Income Child Benefit Charge).
- Legal basis
- Finance Act 2025, ss. 37, 39 (FIG relief); s. 40, Sch. 9 (remittance basis not available after 2024-25)
- Checked
- November 4, 2026
Overseas Workday Relief
OpenFor people relocating
Exemption for pay for workdays outside the UK — capped at the lower of 30% of qualifying employment income or £300,000 a year
Details
- Who
- Employees who are qualifying new residents (10 years of non-residence before arrival), for duties physically performed outside the UK, for up to 4 tax years.
- How it works
- Employment income attributable to overseas workdays is exempt, capped at the lower of 30% of qualifying employment income for the year or £300,000; funds no longer need to be kept offshore. Elected in the Self Assessment return; the election year loses the Personal Allowance and the CGT annual exempt amount.
- Duration
- Up to 4 tax years in which you are a qualifying new resident
- How to opt in
- Make an election and a claim in the Self Assessment return for the year; you work out the amount of relief yourself.
- Limits and risks
- In an election year you lose the Personal Allowance and CGT annual exempt amount; pay for UK workdays is fully taxed.
- Legal basis
- ITEPA 2003, Part 2, Chapter 5C (inserted by Finance Act 2025, s. 38, Sch. 8)
- Checked
- November 4, 2026
Temporary Repatriation Facility
OpenOther
Rate of 12% (2025/26 and 2026/27) or 15% (2027/28) on designated foreign income and gains that arose before 6 April 2025
Details
- Who
- Former remittance basis users with foreign income and gains that arose before 6 April 2025.
- How it works
- Temporary reduced charge on designated pre-6 April 2025 foreign income and gains: 12% in 2025/26 and 2026/27, 15% in 2027/28; once paid, amounts can be remitted to the UK without further tax.
- Duration
- Tax years 2025/26 to 2027/28 only (until 5 April 2028)
- How to opt in
- Designate the amounts in the Self Assessment return for the year you use the facility; once the charge is paid they can be brought to the UK with no further tax.
- Limits and risks
- Only for people who previously claimed the remittance basis; income arising after 6 April 2025 is not covered.
- Legal basis
- Finance Act 2025, s. 41, Sch. 10
- Checked
- November 4, 2026
Trading allowance
OpenFor the self-employed
Up to £1,000 of trading income a year tax-free and unreported; from 6 April 2027 up to £3,000 (announced in Budget 2026)
Details
- Who
- Individuals with trading income (other than from a company they or a connected person control, a partnership, or their employer).
- How it works
- Trading income up to £1,000 a year is exempt and need not be reported; above that, £1,000 may be deducted instead of actual expenses. Cash-basis accounting is the default from 2024/25 with no turnover limit.
- How to opt in
- Automatic if income is £1,000 or less; above that, choose it in the Self Assessment return instead of actual expenses.
- Limits and risks
- You cannot also deduct actual expenses; it does not apply to income from a company you or a connected person control, a partnership or your employer.
- Legal basis
- ITTOIA 2005, Part 6A (trading and miscellaneous income allowances)
- Checked
- November 4, 2026
Seafarers' Earnings Deduction
OpenFor employees
Deduction of 100% of seafarer earnings for the eligible period
Details
- Who
- Seafarers performing duties wholly or partly outside the UK with an eligible period of at least 365 days.
- How it works
- Deduction equal to earnings attributable to the eligible period (effectively a 100% Income Tax exemption); NICs still apply. The period is 365+ consecutive days abroad or a combined period in which at least half the days are abroad.
- How to opt in
- Claim in the Self Assessment return (working sheet HS205); EEA residents use form R43M(SED). After the first claim you can ask for an NT code (form R44) so your employer does not deduct tax.
- Limits and risks
- Only for UK or EEA residents; not for Crown employees (e.g. Royal Navy). Keep tickets, passports and visas, your discharge book — HMRC may check voyages.
- Legal basis
- ITEPA 2003, ss. 378–385
- Checked
- November 4, 2026
Remittance basis
Closed to new entrantsFor people relocating
Foreign income taxed only when remitted to the UK
Details
- Who
- UK residents domiciled abroad (non-doms) — until 5 April 2025
- How it works
- Foreign income and gains were taxed only when brought to the UK; the cost was losing the Personal Allowance and CGT allowance, plus an annual charge of £30,000 after 7 of 9 years of residence (£60,000 after 12 of 14). Abolished from 6 April 2025 and replaced by the FIG regime.
- How to opt in
- Closed: it could only be claimed for tax years up to and including 2024/25.
- Limits and risks
- Previously untaxed amounts brought to the UK after 6 April 2025 are taxable; a reduced rate is available via the Temporary Repatriation Facility (until 5 April 2028).
- Legal basis
- Finance Act 2025, s. 40, Sch. 9; GOV.UK, Tax on foreign income: non-domiciled residents
- Checked
- November 4, 2026
Individual Savings Account (ISA)
OpenFor investors
No tax on interest, income or gains; pay in up to £20,000 a year
Details
- Who
- UK residents aged 18 or over (Lifetime ISA: 18 to under 40)
- How it works
- Interest, dividends and gains inside an ISA are tax-free and not reported. In 2026/27 you can pay in up to £20,000 (up to £4,000 of it into a Lifetime ISA). Budget 2026 kept the £20,000 limit for cash ISAs too.
- How to opt in
- Open an ISA with a bank, building society or investment provider; no application to HMRC is needed.
- Limits and risks
- After you leave you can keep the ISA with UK tax relief, but non-residents cannot pay in (tell your provider); the relief does not remove tax in your new country of residence.
- Legal basis
- GOV.UK, Individual Savings Accounts (ISAs); HM Treasury, Budget 2026 (cash ISA limit kept at £20,000)
- Checked
- November 4, 2026
Tax-free pension lump sum
OpenFor pensioners
25% of pension savings tax-free, up to £268,275
Details
- Who
- Members of UK pension schemes taking their pension (usually from age 55 at the earliest, depending on scheme rules)
- How it works
- You can usually take up to 25% of each pension pot tax-free, up to £268,275 in total (more if you hold a protected allowance). The rest is subject to Income Tax.
- How to opt in
- Through your pension provider when you start taking the pension; no application to HMRC.
- Limits and risks
- The rest is taxed as income; a large lump sum can push you into a higher rate. If you live abroad, the treaty with your country decides who taxes the pension.
- Legal basis
- GOV.UK, Tax on your private pension contributions and payments: what's tax-free
- Checked
- November 4, 2026
Pension Tax Allowance
Starts laterFor pensioners
No Income Tax if total income does not exceed the full new State Pension
Details
- Who
- People over State Pension age whose total income is at or just above the full new State Pension
- How it works
- Pensioners with income up to the full new State Pension will pay no Income Tax; just above that the allowance tapers away. Announced in Budget 2026: to apply from 6 April 2027 to 5 April 2030, to be legislated in Finance Bill 2026-27.
- Duration
- 6 April 2027 to 5 April 2030
- How to opt in
- As announced, automatic for people over State Pension age; details will be in Finance Bill 2026-27.
- Limits and risks
- Not yet law; income from all sources counts; above the threshold the allowance tapers away.
- Legal basis
- HM Treasury, Budget 2026 (28.10.2026), Income Tax: Pension Tax Allowance
- Checked
- November 4, 2026
DoubleTaxation