UK Non-Dom Tax Residence 2027 Arising vs Remittance Calculator

The April 2025 Non-Dom Abolition

Old UK non-dom remittance basis was abolished from 6 April 2025. Replacing it: a 4-year Foreign Income & Gains (FIG) regime — newly arrived UK residents can elect to have foreign income tax-free for their first 4 UK tax years, regardless of domicile. After year 4, full UK tax on worldwide income (arising basis). The Remittance Basis Charge (£30k/£60k/£90k) was eliminated alongside.

4-Year FIG: Who Qualifies

FIG election is available to anyone who is UK tax-resident and has been NON-RESIDENT for the prior 10 consecutive tax years. Returning UK nationals after 10+ years abroad qualify equally with foreign nationals. Election is annual on the tax return; you choose year-by-year whether to claim FIG or apply arising basis. After year 4, FIG is no longer available and full worldwide income tax applies.

IHT 10-Year Tail for Departing Residents

UK Inheritance Tax (IHT) treats domiciles and long-term residents differently. Under the new regime, anyone UK-resident for 10 of the prior 20 tax years is treated as UK-domiciled for IHT — exposing worldwide estate to 40% IHT above the £325k nil-rate band. The 10-year residence tail continues for 10 years AFTER departure, meaning even an early-leaver retains UK IHT exposure for a decade. This is the biggest tax planning risk for non-dom departures.

Strategic Choices: When to Elect FIG

Elect FIG in any year where you have material foreign income (>£20k typically makes the personal allowance loss worth it — you lose UK personal allowance and CGT annual exemption when FIG is claimed). Skip FIG in years where foreign income is low or where you need the personal allowance for UK income optimization. The math switches roughly at £80k+ taxable income with £30k+ foreign income.

Sources: gov.uk Finance Bill 2024-25 FIG regime, hmrc.gov.uk IHT residence. Last updated: May 2026.