Foreign income and gains (FIG) regime replacing the remittance basis from 6 April 2026

The Foreign Income and Gains (FIG) regime replaces the previous remittance basis from 6 April 2025, although neither an individual’s nationality, domicile at any time, nor their ability to claim the remittance basis in previous years affects eligibility for the FIG regime. 

The regime allows eligible individuals to claim relief on certain foreign income and gains, during the first four years of tax residency in the UK (qualifying period) after a period of at least 10 consecutive years of non-UK residence.

Eligible foreign income and gains are not subject to UK tax during the qualifying period. However, if there is a FIG claim the following allowances will be lost for all income:

• Personal allowance
• Capital gains annual exempt amount
• Married couples allowance
• Marriage allowance transfer
• Blind person’s allowance

Who is eligible to claim?

Individuals who are UK resident in the tax year and

• with a period of at least 10 consecutive tax years as non-resident prior to the tax year in which they returned to the UK; AND
• are within a four consecutive year period of being resident since the 10 years of being non-resident. (Spilt years will be treated as a full year of UK residence)

Note: Members of the House of Commons or House of Lords are not eligible to claim FIG relief.

What income and gains are eligible for relief?

The relief can be claimed on the following income and gains arising from 6 April 2025:

• Profits from foreign trades
• Profits from foreign property businesses 
• Dividends from non-UK resident companies
• Interest from foreign sources
• Qualifying foreign gains

Any arising amounts taxed under the FIG regime does not have to be remitted to the UK.

Note: Foreign employment is not eligible for this relief but may qualify for Overseas Workday Relief (OWR)

When can FIG relief be claimed?

Relief can be claimed on qualifying income and gains arising in 2025/26 (and future tax years) providing the tax year falls within the qualifying period. The four-year qualifying period may have started before the tax year so the relief is available to claim from 2025/26 until the end of the qualifying period. Earlier years cannot be ‘rolled over’.

HMRC guidance: Check if you can claim the 4-year foreign income and gains regime provides some useful examples on how the qualifying period works.

What happens to income that has ‘arisen’ in previous years but is ‘remitted’ from 2025/26 onwards?

Any foreign income and gains arising in tax years prior to 2025/26 under the remittance basis which is remitted to the UK during or after 2025/26) will need to be declared in the tax return and will be taxed. There is the option to use the temporary repatriation facility (TRF) to take advantage of a lower tax rate by designating the pre-6 April 2025 foreign income and gains and paying the TRF charge – see Foreign Income and Gains – what is the temporary repatriation facility TRF).

Effects of claiming FIG within a tax year

• Adjusted net income – foreign income on which FIG relief has been claimed will still count towards adjusted net income.
• Loss of allowances – when FIG relief is claimed the entitlement to the personal allowance and certain other allowances (detailed above) are lost on all income, regardless of which income/gains FIG is claimed for.
• Capital losses – foreign losses arising from disposals during the tax year when the FIG relief claim is made, will cease to be allowable losses for in-year or carried forward relief. Again, this is regardless of which income/gains FIG is claimed for.
• Trading and property income losses – foreign trade or property losses arising in the year in which a FIG relief claim is made, are no available for in year or carried forward relief, also regardless of which income/gains FIG has been claimed for.
• Finance cost relief – interest and finance costs in relation to a foreign residential property, arising in the year of a FIG claim, cannot be used for relief in-year or carried forward. This also applies regardless of which income/gains FIG relief has been claimed for.
• Relief on pension contributions – in the year in which a FIG claim has been made, relevant UK earnings is reduced by the amount of foreign income on which FIG has been claimed. This is capped to the amount that would reduce the maximum amount of relief to the basic amount (£3,600).

TaxCalc functionality for entering claims

As a starting point, within the Residence and Remittance pages (SA109) of the return, there is a wizard provided for ‘Foreign Income and Gains (FIG) on foreign income’ (box NRD28). Eligibility for the relief can be determined by completing a set of questions.

Other relevant FIG entries can be found in:

SA103 Self employment – Full - new box 76.1 for amount claimed under the FIG regime and box 77.1 for adjustment to losses as a result of relief claimed claim under the FIG regime.

SA104 Partnership – Full - new boxes for amount claimed under the FIG regime for each type of income; boxes 20.1 (profits), 21.1 (adjustment of losses) 35.1 (untaxed savings), 55.1 (offshore funds), 60.1 (other untaxed foreign income), 75.1 (taxed dividend and other income).

SA106 Foreign - all sections have boxes available to enter the amount claimed under the FIG regime.

SA107 Trusts etc - new box 22.1 for amount claimed under the FIG regime on income from foreign estates.

SA108 Capital Gains Tax summary - all disposal categories have boxes available to enter the amount of relief claimed under the FIG regime.

SA109 Residence and foreign income and gains (FIG) regime etc – new boxes 28 (tick if claiming relief under the FIG regime on income), 29 (tick if claiming relief under the FIG regime on gains).

Useful Links

HMRC Residence and FIG regime manual - qualifying new resident

HMRC Residence and FIG regime manual - foreign capital gains

HMRC Residence and FIG regime manual – qualifying foreign income

HMRC Residence and FIG regime manual – effects of claim

HMRC – check if you can claim FIG