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United Kingdom tax

Special regime for new residents: Four-year Foreign Income and Gains regime.

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Special regimes for new residents

Special regime

Four-year Foreign Income and Gains (FIG) regime

Tax relief

Foreign-source income: New-resident relief (4 years)
Details
  • Who: UK tax resident under the Statutory Residence Test

Qualifying new UK residents can claim relief on eligible foreign income and gains for their first four tax years of UK residence after at least ten years of non-UK residence; regime replaced the remittance basis on 6 April 2025. 1 2

Taxed on

Claimed eligible foreign income and gains arising in the first four UK tax-resident years after at least ten years’ non-UK residence. Examples include foreign trade conducted wholly outside the UK, overseas property-business profits, non-UK dividends and foreign interest. Foreign employment earnings and specified employment income are outside FIG.

Who it applies to

  • UK tax resident under the Statutory Residence Test.
  • Within the first 4 years of UK tax residence after at least 10 years as non-UK resident.
  • Claim made annually; unused years do not roll over; temporary years abroad are skipped.
  • If the 4 years began before 6 April 2025, claims are available from 2025 to 2026 to the last year of the period.

Exclusions

  • UK-source income stays taxable.
  • Foreign earnings and foreign specific employment income are not eligible, though Overseas Workday Relief may apply.
  • A claim loses Income Tax and Capital Gains Tax tax-free allowances, Marriage Allowance, Married Couples Allowance and Blind Person's Allowance.

Tax residence

Qualifying resident means UK tax resident under the Statutory Residence Test and within the first four years of UK residence after at least a 10-year period as non-UK tax resident.

Visas

Immigration permission does not qualify anyone; eligibility is tax residence only.

Other taxes

National Insurance, VAT, payroll, UK-source income, treaties and home-country taxes are outside the claim.

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Standard rules and foreign-source income

Standard rules

UK income tax rates and Personal Allowance

Details
  • On: Taxable income of UK residents (England, Wales and Northern Ireland bands shown)
  • Who: UK tax resident under the Statutory Residence Test
  • Limit: £13k/yr ≈ $17k

Tax year 2026/27 (6 April 2026 to 5 April 2027): standard Personal Allowance GBP 12,570 (≈ $16,600); 20% basic rate to GBP 50,270, (≈ $66,400) 40% to GBP 125,140 (≈ $165,000) and 45% above; the allowance falls by GBP 1 (≈ $1) for every GBP 2 (≈ $3) of adjusted net income above GBP 100,000 (≈ $132,000) and is zero from GBP 125,140 (≈ $165,000) (Scotland sets its own rates on non-savings income). Dividends above the GBP 500 (≈ $660) allowance are taxed at 10.75%, 35.75% and 39.35% from 6 April 2026. 3 4

Taxed on

Taxable income of UK residents (England, Wales and Northern Ireland bands shown).

Who it applies to

  • UK tax resident under the Statutory Residence Test.

Limits

  • GBP 12,570 a year (≈ $16,600) · Personal Allowance
  • GBP 50,270 a year (≈ $66,400) · Upper limit of 20% basic rate
  • GBP 100,000 a year (≈ $132,000) · Adjusted net income above which the Personal Allowance falls by GBP 1 (≈ $1) for every GBP 2 (≈ $3)
  • GBP 125,140 a year (≈ $165,000) · Upper limit of 40% higher rate; 45% above, no Personal Allowance
  • GBP 500 a year (≈ $660) · Dividend allowance; dividends above it are taxed at 10.75% (basic), 35.75% (higher) and 39.35% (additional rate) in 2026/27

Tax residence

Statutory Residence Test.

Visas

Visa type does not change rates.

Other taxes

National Insurance and VAT are separate. Dividend rates for 2026/27 are 10.75% (basic), 35.75% (higher) and 39.35% (additional), after the GBP 500 (≈ $660) dividend allowance.

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VAT, social security and other taxes

Questions people ask

Who qualifies for Four-year Foreign Income and Gains regime?

UK tax resident under the Statutory Residence Test. Immigration permission does not qualify anyone; eligibility is tax residence only.

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

Sources (4)

Official sources

  1. Check if you can claim the 4-year foreign income and gains regime · HM Revenue and Customs · checked 2026-10-10 · published 2025-04-06
  2. Residence and FIG regime manual RFIG41000 · HM Revenue and Customs · checked 2026-10-10
  3. Income Tax rates and Personal Allowances · HM Revenue and Customs · checked 2026-10-10
  4. Tax on dividends: dividend allowance and rates for the 2026 to 2027 tax year · HM Revenue & Customs (GOV.UK) · checked 2026-10-11