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How the FIG Rules Replace the Remittance Basis for Non-Doms
Non-domiciled individuals and transitional taxpayers affected by the abolition of the remittance basis and the introduction of the Foreign Income and Gains (FIG) regime from 6 April 2025.
This guide explains how non-doms must report foreign income and gains, who qualifies for the FIG regime, and how claims should be submitted via self-assessment.
Misunderstanding the new FIG rules or missing self-assessment deadlines may lead to HMRC penalties or incorrectly reported income, risking unexpected tax liabilities.
Abolition of the Remittance Basis
From 6 April 2025, the remittance basis is abolished. All foreign income and gains will be reported on a residence-based approach for UK tax purposes.
Introduction of the FIG Regime
The Foreign Income and Gains (FIG) regime provides a 4-year exemption for new UK residents who have not been UK tax resident in 10 of the previous 20 tax years. During this period, qualifying foreign income and gains are not taxed in the UK.
Eligibility under the Statutory Residence Test (SRT)
- Must be a new UK resident according to the SRT.
- Must not have been UK tax resident in 10 of the previous 20 tax years.
Treatment of Foreign Income and Gains
- FIG applies to both income and gains arising after 6 April 2025.
- Prior use of the remittance basis does not affect eligibility for the 4-year FIG exemption.
Claiming FIG Relief via Self-Assessment
- Claims must be made through the self-assessment tax return.
- Quantified figures for foreign income and gains must be included.
- Deadlines for filing align with standard self-assessment deadlines.
Compliance Considerations
- Ensure accurate reporting of all post-April 2025 foreign income and gains.
- Confirm eligibility under SRT before claiming FIG relief.
- Keep detailed records to support self-assessment claims.
Risks and Penalties
- Incorrect or late claims can trigger HMRC penalties and interest.
- Misapplication of FIG exemptions may lead to unexpected tax liabilities.
Next Steps
If you are a non-dom with foreign income or gains, CIGMA Accounting can help you understand how the 2025 FIG regime affects your tax position and ensure compliance with reporting requirements.
Plan Now for the End of the Remittance Basis
The abolition of the remittance basis and introduction of the FIG rules will change how non-domiciled individuals are taxed on foreign income and gains. Misunderstanding the new framework can lead to unexpected UK tax liabilities. Seeking expert tax planning services London ensures your affairs are structured correctly under the new rules. Cigma Accounting, advising clients from our Farringdon and supporting individuals in Shoreditch and Holborn, provides clear guidance to help you transition smoothly.
Careful review of foreign income, remittances, and reliefs is essential to minimise exposure. Working with an experienced tax accountant in London helps confirm compliance and optimise your position. Cigma Accounting offers practical support with physical offices across London, helping non-doms manage the changes confidently.
GOODBYE REMITTANCE BASIS, HELLO FIG
The UK is replacing the remittance basis for non-doms with the “Figures Inclusion” (FIG) system. Learn how this affects your UK tax liability, what counts as taxable income, and how to stay compliant.
Trusted guidance from London-based accountants, focused on accuracy, clarity, and compliance.
