The UK is ending its non-domiciled (non-dom) tax regime and introducing a new residence-based system starting April 2025, offering temporary incentives for new arrivals.
• Non-doms who move to the UK and have been non-resident for the previous 10 years will receive 100% UK tax relief on foreign income and gains for the first four years of tax residence. • Existing non-doms losing the remittance basis after April 6, 2025, may benefit from transitional measures: a 50% reduction on personal foreign income tax in 2025–26 and a temporary 12% repatriation tax on foreign income/gains in 2025–26 and 2026–27. • The remittance basis for new foreign income and gains is abolished; after four years of UK residence, all foreign income and gains are taxed like other UK residents. • Inheritance tax rules for non-UK assets remain unchanged until detailed consultation; protections on non-resident trusts will end for new foreign income/gains arising after April 6, 2025. • The regime is most attractive to high-earning newcomers, particularly those in tech or with investment income, who can legally remit foreign income to the UK tax-free for four years.
Takeaway: New UK arrivals with substantial foreign income can enjoy up to four years of tax-free foreign earnings, but long-term non-dom benefits are ending, making early planning critical before April 2025.
