FIG regime UK: eligibility and compliance explained
The move to the UK’s foreign income and gains (FIG) regime has significantly expanded the number of clients requiring specialist tax advice.
For firms working with internationally mobile clients, the challenge is no longer understanding the rules but applying them consistently, accurately and at scale.
This article explains how to assess eligibility, manage reporting requirements and build repeatable processes to handle FIG rules across your client base.
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For time-pressed advisers, applying the new rules consistently, defensibly, and at volume across client portfolios requires the right framework and technology support.
Remittance basis abolished: what has changed
The removal of the remittance basis has reset how foreign income and gains are treated.
Under the foreign income and gains regime:
- UK-resident clients are taxed on worldwide income and gains as they arise
- Deferral through offshore structures is no longer available in the same way from 2025/26
- Relief sits within the FIG regime UK rules and must be actively claimed
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The practical impact is immediate. As more taxpayer clients seek advice on eligibility, accounting firms will need to manage greater volumes of data and ensure it is analysed and reported correctly.
The key decision under the foreign income and gains regime
One question drives most client outcomes: Does this client qualify for FIG relief, and are they within the window?
Firms understand this logic well. The challenge is embedding it into consistent, repeatable processes that scale across your practice.
A simple decision flow helps structure that conversation:
FIG regime UK: where advisers add value
The FIG regime creates a defined, time-limited planning window.
For qualifying clients:
- Foreign income and gains may be exempt for up to four years
- Funds can be brought into the UK without additional tax during that period
- Timing of income and disposals becomes more important
- Former remittance basis users may bring pre-April 2025 foreign income and gains into the UK at a reduced flat rate (12–15%) via the Temporary Repatriation Facility — available until April 2028.
However, the decision to claim is rarely straightforward. Relief comes with trade-offs, including the loss of certain UK allowances in that tax year.
This makes comparison essential. Advisers need to assess outcomes across different scenarios, not just confirm eligibility. The firms that do this well will stand out. The rules are widely available, the application still requires professional judgement.
Non-UK domiciled tax changes: the compliance shift
The compliance expectations under the new framework are clear and more demanding.
Firms must now ensure:
- All foreign income and gains are identified and reported
- FIG claims are made actively and correctly through Self Assessment
- Evidence supports eligibility and the advice given
The volume of data increases, and accuracy requirements become more rigorous.
In practice, this means:
- Collect client data earlier in the process
- Build clearer internal decision frameworks
- Structure documentation more rigorously
Why the FIG regime is not standalone
The foreign income and gains regime sits alongside other changes that affect the same client base:
- Overseas Workday Relief continues in a revised and capped form
- Trust protections for foreign income have largely fallen away
- Inheritance Tax increasingly follows residence for long-term UK clients
These connections matter. Decisions taken during the FIG period can influence long-term tax exposure.
What firms should prioritise now
For firms looking to act without overcomplicating things:
- Identify clients with foreign income or recent UK arrival
- Map potential FIG eligibility and timelines
- Check how current processes capture and evidence foreign income
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That advantage will come from acting early and building workable processes before the first filings.
Download the full FIG regime special report
This special report breaks down eligibility, relief calculations, transitional rules, and firm-level operating models, giving you the structure needed to apply this consistently in practice.
Navigate major personal tax reforms with confidence. Thomson Reuters Digita Personal Tax includes our unified HMRC-recognised Making Tax Digital for Income Tax software and supports the Foreign Income and Gains (FIG) regime changes.
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Aaftab Fatema is a Product Manager at Thomson Reuters, responsible for UK tax compliance across the Digita Personal, Business, and Trust Tax product. She brings over ten years of experience in the UK tax and accounting sector, with deep subject‑matter expertise developed through work with leading accounting and professional services firms. |
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