Relocation tax guideMoving to United Kingdom: Taxes for Expats 2026
The UK taxes residents on worldwide income at rates up to 45%, with capital gains at 18% or 24% and inheritance tax at 40%. From 6 April 2025 the old non-domicile (remittance) basis was abolished and replaced by a 4-year Foreign Income and Gains regime: qualifying new arrivals pay no UK tax on foreign income and gains for their first four years. Residency follows the Statutory Residence Test.
The UK ended its centuries-old non-domicile regime in April 2025 and replaced it with a time-limited relief for new arrivals. The change reshaped both income tax and inheritance tax for internationally mobile people. This guide explains the new Foreign Income and Gains regime, how UK residence is determined, and the headline rates - drawn from the country breakdown.
United Kingdom: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 25%Headline main rate (a 19% small-profits rate applies below GBP 50,000) | PwC Worldwide Tax Summariesas of 2025-12-24 |
| Top personal income tax | 45%Top rate (England/Wales/NI); Scottish residents taxed at different rates; dividend rates differ | PwC Worldwide Tax Summariesas of 2025-12-24 |
| VAT / GST (standard) | 20%Standard VAT rate | PwC Worldwide Tax Summariesas of 2025-12-24 |
| Capital gains | 18% / 24%Individuals: 18% (basic-rate band) / 24% (higher-rate band) | PwC Worldwide Tax Summariesas of 2025-12-24 |
| Inheritance / wealth tax | 40%Charged on the estate above the GBP 325,000 nil-rate band | PwC Worldwide Tax Summariesas of 2025-12-24 |
The Foreign Income and Gains (FIG) regime regime
Replaced the non-domicile / remittance basis from 6 April 2025.
The remittance basis for non-doms was abolished. In its place, an individual who becomes UK tax resident after at least 10 consecutive non-resident years can claim 100% relief on foreign income and gains for their first four years of UK residence - and bring those funds into the UK without a tax charge during that window. From year five, the individual is taxed on worldwide income and gains like any other resident.
- 100% relief on foreign income and gains for the first 4 years of UK residence, for qualifying new arrivals.
- Requires at least 10 consecutive tax years of non-UK-residence before arriving.
- Foreign funds can be remitted to the UK tax-free during the 4-year window (unlike the old remittance basis).
- From year five, worldwide income and gains are taxed at the standard UK rates.
Source: PwC Worldwide Tax Summaries - United Kingdom (as of 2026-06-24).
| Item | Under the FIG regime | Standard resident rules |
|---|---|---|
| Foreign income and gains | 100% relief (not UK-taxed), remittable tax-free | Taxed on worldwide income and gains |
| Time limit | First 4 years of UK residence | No time limit |
| Eligibility | 10+ consecutive prior non-resident years | Not applicable |
Source: PwC Worldwide Tax Summaries - United Kingdom (as of 2026-06-24).
When you become a tax resident
UK residence is determined by the Statutory Residence Test (SRT), which weighs days spent in the UK against connecting factors (family, accommodation, work, and prior residence) rather than a single day count. Spending 183 days or more in a tax year makes you automatically resident; fewer days can still make you resident depending on your ties.
Source: PwC Worldwide Tax Summaries - United Kingdom (Residence) (as of 2026-06-24).
The end of non-dom: the FIG regime
For generations, UK residents who were not domiciled in the UK could elect the remittance basis - paying UK tax on foreign income and gains only when they brought the money into the UK. That regime was abolished from 6 April 2025 and replaced by the residence-based Foreign Income and Gains regime.
The new regime is more generous in its first years (full relief plus tax-free remittance) but strictly time-limited to four years, after which worldwide taxation applies. Transitional rules apply to people who were already using the remittance basis, so anyone affected should confirm how the move-over rules apply to them.
Inheritance tax is now residence-based
Alongside the income-tax change, the UK moved inheritance tax from a domicile basis to a residence basis from 6 April 2025. In broad terms, long-term UK residents (those resident for 10 of the previous 20 years) come within the scope of UK inheritance tax on their worldwide estate. Inheritance tax remains 40% above the nil-rate band, so the residence test now matters as much for estates as for income.
Before you move: what to weigh
- The FIG relief lasts only 4 years - it is a soft-landing for new arrivals, not a long-term shelter.
- Inheritance tax is now based on residence, not domicile: long-term residents can be exposed to 40% on worldwide assets.
- UK residence turns on the Statutory Residence Test, not just a day count - ties to the UK can make you resident below 183 days.
- US citizens remain taxable by the US on worldwide income; the UK-US treaty and foreign-tax credits then apply.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to United Kingdom.
Is the UK non-dom regime still available?
No. The non-domicile / remittance basis was abolished from 6 April 2025. New arrivals now use the Foreign Income and Gains regime, which gives 100% relief on foreign income and gains for the first four years of UK residence (after 10+ non-resident years), then worldwide taxation from year five.
What is the UK's Foreign Income and Gains (FIG) regime?
A four-year relief for people becoming UK resident after at least 10 non-resident years: their foreign income and gains are not UK-taxed and can be brought into the UK tax-free during those four years. From the fifth year of residence, they are taxed on worldwide income and gains at standard UK rates.
When are you UK tax resident?
Residence is set by the Statutory Residence Test, which combines days in the UK with ties such as family, home, and work. 183 days or more in a tax year makes you automatically resident; fewer days can still make you resident depending on your connections. Confirm your position under the SRT.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in United Kingdom as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.