Do I lose my UK Personal Allowance if I claim the 4-year FIG regime?

Yes. If you make a formal election to claim the 4-year FIG regime on your Self-Assessment tax return for a tax year, you forfeit your entitlement to the standard UK Personal Allowance (£12,570) and the Capital Gains Tax Annual Exempt Amount (£3,000) for that year. If your foreign income and gains are very small, it may be more tax-efficient to be taxed on the worldwide arising basis and retain your personal allowances.

What is the Temporary Repatriation Facility (TRF) and what are the rates?

The Temporary Repatriation Facility (TRF) is a transitional relief for individuals who previously claimed the remittance basis before 6 April 2025. It allows them to designate unremitted foreign income and gains accrued before 6 April 2025 and pay a reduced flat tax rate: 12% in the 2025/26 and 2026/27 tax years, and 15% in the 2027/28 tax year. Once designated, the funds can be brought cleanly into the UK at any time without further tax.

What happens in Year 5 of UK residence after the FIG window expires?

From your fifth tax year of UK residence onwards, the FIG exemption ceases entirely. You are automatically taxed on the worldwide arising basis. All subsequent foreign income (dividends, interest, rental income) is subject to UK Income Tax (up to 45%), and all foreign capital gains are subject to UK Capital Gains Tax (up to 24%), subject to double taxation relief under applicable international tax treaties.

How does the new residence-based Inheritance Tax (IHT) regime work?

The new rules replace domicile-based IHT with a statutory residence test. An individual becomes a 'long-term resident' for IHT purposes once they have been UK tax resident for at least 10 out of the previous 20 tax years. Once you become a long-term resident, your worldwide assets (including offshore property and investments) become subject to 40% UK Inheritance Tax.

What is the 10-year residency IHT tail after leaving the UK?

If a long-term resident departs the UK, their non-UK assets remain within the scope of UK Inheritance Tax for a 'tail' period. If you were resident for 10 to 13 years, the tail is 3 years. The tail increases by one additional year for each year of UK residence beyond 13 years, reaching a maximum 10-year tail for those who were UK tax resident for 20 years or more.

What happened to Overseas Workday Relief (OWR)?

Overseas Workday Relief (OWR) has been modernized to align with the new 4-year FIG regime. Eligible employees claiming the FIG regime who perform employment duties outside the UK can claim relief on the proportion of their employment earnings relating to foreign workdays for up to 4 tax years, subject to an annual cap, without requiring the salary to be paid into an offshore bank account.

Statutory 2026/27 Residence-Based Tax Engine

Non-Dom FIG Calculator UK (2026/27)

Calculate tax liability under the new 4-year Foreign Income & Gains (FIG) regime. Model 100% tax relief on overseas income, the 12% Temporary Repatriation Facility (TRF), and the 10-year residency IHT tail under HMRC rules.

Finance Act 20254-Year 100% Exemption12% Flat TRF Rate

Compare a simplified 2026/27 E/W/NI non-savings-income and ordinary-capital-gains illustration, assuming the foreign amounts qualify for FIG relief. Residency answers alone do not establish eligibility. A FIG claim can forfeit the Personal Allowance and CGT Annual Exempt Amount.

Income and residence assumptions

UK non-savings income (£)

Eligible foreign non-savings income (£)

Eligible foreign ordinary capital gains (£)

Consecutive non-resident tax years before arrival

Year of UK residence since arrival (1, 2, …)

The first four residence years can start before 6 April 2025. Do not count a new four-year period from the date you first claim. Foreign employment, savings, dividends, special gains, overseas workday relief, foreign tax credits and treaties need their relevant treatment and are outside this simplified model.

Separate TRF designation illustration

TRF designation tax year

Qualifying pre-6 April 2025 amount designated (£)

TRF has separate former-remittance-basis, designation and fund-identification rules. The amount is assumed eligible; entering it does not prove that it qualifies. No hypothetical 40% remittance-tax saving is invented.

Illustrative comparison

Your answers meet the two simplified residence conditions. Source classification and the full statutory tests still need checking.

Arising-basis Income Tax: £73,953.00
Arising-basis CGT: £18,480.00
Arising-basis total: £92,433.00
FIG-claim UK Income Tax, without allowance: £49,203.00
Illustrative reduction under FIG: £43,230.00
Separate TRF charge at 12%: £18,000.00

There is no residence-based Inheritance Tax determination in this tool. Long-term residence considers the actual 20-year history, departure rules, transitional treatment, asset types and reliefs. A single current-residence-year field cannot establish an estate's IHT exposure or departure tail.

Check FIG eligibility and claims
Check separate TRF rules

Statutory Legislation & Principles

How the UK 4-Year FIG Regime Operates in 2026/27

Under landmark tax reforms enacted in the Finance Act 2025, the historic non-domicile tax regime—dating back to 1799—was formally repealed on 6 April 2025. The remittance basis of taxation, which previously allowed resident non-domiciled individuals to shelter offshore funds from UK tax unless remitted, has been replaced by a modern, internationally competitive residence-based regime.

At the centre of this new architecture is the 4-year Foreign Income and Gains (FIG) regime. Designed to attract high-earning talent, tech entrepreneurs, and international investors to the United Kingdom, it provides total statutory exemption from UK Income Tax and Capital Gains Tax on foreign earnings for an individual's first four tax years of UK tax residence.

Core Pillars of the 2026/27 Non-Dom Tax Regime

Statutory Element	Legal Qualification	Tax Treatment
4-Year FIG Exemption	10 consecutive tax years of non-residence prior to arrival	100% tax-free foreign income & gains; zero remittance tax
Personal Allowance Trade-off	Mandatory election on Self-Assessment (SA100)	Forfeits £12,570 Personal Allowance and £3,000 CGT AEA
Temporary Repatriation Facility (TRF)	Former remittance basis users with pre-April 2025 funds	12% flat rate in 2026/27 (15% in 2027/28) on designated funds
Year 5+ Worldwide Arising	All UK residents from 5th tax year of residence onwards	Standard UK Income Tax (20%/40%/45%) and CGT (18%/24%)
10-Year Residency IHT Test	UK resident for 10 out of the previous 20 tax years	Worldwide estate in scope of 40% IHT; 3 to 10-year exit tail

Remittance Freedom: The Critical Advantage

The most profound operational difference between the old remittance basis and the new FIG regime is remittance freedom. Under the old rules, qualifying non-doms had to maintain intricate offshore 'clean capital' bank accounts to avoid accidental taxable remittances. Bringing overseas income into the UK triggered punitive tax charges of up to 45%.

Under the new 4-year FIG regime, qualifying foreign income and capital gains can be freely brought into the United Kingdom at any time with zero UK tax liability. Individuals can use their overseas wealth to purchase UK residential property, invest in UK businesses, or cover personal living expenses without facing punitive remittance tax traps.

The 10-Year Inheritance Tax (IHT) Rule & Exit Tail

Under the revised Inheritance Tax framework, domicile is entirely replaced by the concept of the long-term resident:

First 9 Years of UK Residence: Non-UK situated assets remain completely outside the scope of UK Inheritance Tax. Only UK-sited assets (such as UK residential real estate) are taxable.
The 10-Year Trigger: Once an individual has been UK tax resident for 10 out of the last 20 tax years, their entire worldwide estate falls within the scope of 40% UK Inheritance Tax (subject to the standard £325,000 nil rate band).
The Post-Departure IHT Tail: To prevent individuals from briefly exiting the UK to avoid death duties, a statutory 'tail' applies. A long-term resident who leaves the UK remains subject to UK IHT on their worldwide assets for 3 to 10 years after departure, depending on their total length of UK residence.

Frequently Asked Questions About Non-Dom FIG Rules

Frequently Asked Questions

Clear answers based on official HMRC rules and statutory guidance.

Effective from 6 April 2025, the UK abolished the concept of domicile for tax purposes and replaced the remittance basis with the 4-year Foreign Income and Gains (FIG) regime. Under this regime, individuals who become UK tax resident after at least 10 consecutive tax years of non-UK residence pay zero UK tax on qualifying foreign income and foreign capital gains arising during their first 4 tax years of UK residence. Crucially, these funds can be remitted to the UK without triggering any UK tax charge.

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Relief depends on residence and a claim

The four-year FIG regime and the Temporary Repatriation Facility are different rules. FIG relief has a prior non-residence test and claiming it can forfeit allowances.

TRF designation rates are 12% for 2025/26 and 2026/27 and 15% for 2027/28. Overseas workdays, trusts, treaty relief and residence-based Inheritance Tax need separate consideration.

Check the rules for your circumstances

Official guidance supports the rules described here; it does not approve or certify this calculator. Confirm dates, eligibility and unsupported cases before making a financial decision.