What’s Changing Under the UK’s New Foreign Income Rules in 2026?

If you currently live in the UK but your permanent legal home is in another country, you’re classed as a non-UK domiciled individual or a non-dom. What’s more, the way you report your offshore money is about to go through one of the biggest overhauls in decades. 

From 6th April, the idea of domicile is being scrapped from the UK tax system and will instead be replaced by a regime based entirely on residence. This means a shift in how you complete your Self Assessment and a new set of rules for claiming tax relief.

Keep scrolling to find out more.

The big switch

Traditionally, non-doms used the SA109 (Residence and Remittance Basis) form to claim that their foreign income should only be taxed if they brought it into the UK. But, under the new rules:

1. SA109 is no longer the primary place for claiming relief on new foreign income.
   
2. Most UK residents will now be required to complete a SA106 (Foreign Income) form which means you’ll be taxed on an arising basis and you must report worldwide income as it happens, regardless of where it stays. 

If you qualify for the new Foreign Income and Gains (FIG) regime, you’ll report income on the SA106 and claim 100% relief there.

What is the new Foreign Income and Gains regime?

A new 4-year Foreign Income and Gains regime is coming into force, replacing the Remittance Basis.

• Who qualifies? New residents who’ve been non-UK residents for at least 10 consecutive tax years before arriving.
• The benefit: For your first four years of UK residence, you pay zero UK tax on foreign income and gains.
• The freedom: Unlike the old rules, you can now bring this money into the UK (remit it) without triggering a tax charge.

If you were already a UK resident before 6th April, you can still access the FIG regime but only for the remainder of your first four years – providing that you met the 10-year non-residency rule before you arrived. 

Can I reduce my tax?

If you have foreign income from years before April that you haven’t brought into the UK yet, there is an opportunity to reduce your tax. 

The Temporary Repatriation Facility (TRF) allows you to bring old funds into the UK at a reduced tax rate for a limited window.

• 2025/26 & 2026/27: A flat rate of 12%.
• 2027/28: The rate increases to 15%.

However, bear in mind that once this window closes, remitting old remittance basis income could be taxed at your full marginal rate (up to 45%).

A checklist for GoSimpleTax users

1. Check your 10-year history: To claim the 4-year FIG relief, you need to confirm you were truly non-resident for the decade prior to your arrival.
   
2. Report everything: You’ll be required to fill out the SA106 pages more extensively. Even if your income is exempt under the FIG regime, it must be quantified and identified on your return to claim the relief.
   
3. Mind the personal allowance: Just like the old remittance basis, if you claim FIG relief, you lose your tax-free Personal Allowance and your Capital Gains Tax Annual Exempt Amount.
   
4. Capital Gains rebasing: If you held foreign assets on 5th April 2017 and are moving from the remittance basis to the arising basis, you may be able to rebase those assets to their 2017 value to reduce future tax.

How GoSimpleTax can help

Navigating any changes in the tax system can feel daunting but that’s where we come in. GoSimpleTax stays up to date with the latest rules and regulations and our software guides you through the transition, ensuring you claim the right relief and don’t pay a penny more than you owe.

What’s more, we even have a whole host of resources and articles dedicated to non-doms so you can brush up your knowledge. 

Ready to get your head around the changes? Sign up or login to GoSimpleTax today to start organising your 2025/26 records.

Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.