Tax news · June 2026
The non-dom remittance basis ended in April 2025, replaced by a residence based system. Here is what changed and what affected people should do.
The long standing rules for people who lived in the United Kingdom but were domiciled abroad, known as non-doms, were swept away in April 2025. The old remittance basis, which let non-doms keep foreign income and gains out of UK tax as long as they did not bring the money into the country, has been abolished and replaced with a new system based on how long you have been resident here. It is one of the biggest changes to the taxation of internationally mobile people in decades.
From April 2025, the concept of domicile no longer drives your tax. Instead, a new residence based regime applies. New arrivals to the United Kingdom can benefit from a four year period during which their foreign income and gains are not taxed here, often called the four year foreign income and gains regime, but after that they are taxed on their worldwide income and gains like everyone else. Inheritance tax has also moved towards a residence based test rather than domicile. A temporary facility was offered to let former non-doms bring previously sheltered money into the UK at a reduced tax rate.
This affects people who have moved to the United Kingdom from abroad and have foreign income, gains or wealth, as well as long term residents who previously claimed non-dom status. For someone who has been here for several years, the change can mean their worldwide income and gains are now fully within UK tax for the first time, which is a major shift. New arrivals, on the other hand, get a clear if shorter window of relief.
Anyone affected should review their position carefully, because the right response depends entirely on how long you have been resident, where your assets are, and your plans. New arrivals should make sure they use the four year regime properly. Longer term residents need to understand their new worldwide exposure and consider whether the temporary repatriation facility, the timing of disposals, or in some cases their residence plans, change the picture. This is specialist territory where good advice pays for itself many times over.
Our view is that this is a complex change that has been widely misunderstood, and the headlines do not capture the detail that actually matters to each person. Some affected individuals will pay considerably more tax, while well advised new arrivals can still plan effectively within the new rules. The worst approach is to assume the old planning still works, because it largely does not. Anyone with international income or assets who has not had their position reviewed since the change really should.
We review the position of internationally mobile clients under the new residence based rules, plan the use of the four year regime, and advise on income, gains and inheritance tax across borders. Book a free call back and we will look at your circumstances.
No. The remittance basis and the use of domicile for tax were abolished in April 2025 and replaced with a residence based system, including a four year relief for new arrivals on their foreign income and gains.
Review your position urgently, because your worldwide income and gains may now be within UK tax. The right response depends on your residence history, your assets and your plans, so specialist advice is important.
We will review your position under the new residence based rules and plan accordingly. Book a free call back for specialist advice.