UK Non-Dom Tax Regime Ends: What You Need to Know for 2026 |

The United Kingdom is ushering in a new era of taxation with the abolition of its long-standing non-domicile (non-dom) tax regime, a move set to profoundly impact global citizens residing in the UK from the 2025-2026 tax year onwards. This significant reform, announced to take effect from April 6, 2025, replaces the complex remittance basis with a simpler, yet far-reaching, ‘Foreign Income and Gains (FIG)’ regime.

Under the previous system, non-domiciled individuals could avoid UK tax on their foreign income and gains if these funds were not brought into the country. However, the new FIG regime introduces a four-year window for new arrivals. For their first four tax years of UK residency, individuals will not pay UK tax on foreign income and gains, regardless of whether these are remitted. After this initial four-year period, they will be subject to UK tax on their worldwide income and gains, aligning their tax treatment more closely with that of UK-domiciled residents.
This overhaul is particularly crucial for high-net-worth individuals, international entrepreneurs, and those with substantial overseas assets or income. Existing non-doms, who have been resident in the UK for less than four years by April 2025, will also transition to the new FIG regime. For those who have been non-domiciled for longer, transitional reliefs are being introduced. These include a temporary 50% reduction in the amount of foreign income subject to tax in the 2025-26 tax year, and an option to rebase capital gains on foreign assets to their April 2019 value, potentially reducing tax liabilities on future disposals.

The implications extend beyond individual tax returns, influencing investment strategies, wealth management, and even decisions on UK residency. Businesses employing or attracting international talent must also consider how these changes might affect compensation packages and relocation incentives. MiExpert advises all affected individuals and entities to seek professional tax advice to navigate these complex changes effectively and ensure compliance with the new UK tax landscape. Proactive planning is essential to optimize financial outcomes in this new tax environment.