Tax Changes For
Non-UK Domiciled Individuals
The UK is making some major modifications to how non-UK domiciled individuals (generally referred to as “non-doms“) are taxed. From 6 April 2025, These changes are aimed at creating a fairer and more modern tax system while still keeping the UK attractive for global talent and investment. Here’s at Taxaccolega, what our clients and readers need to realise if you’re affected and understanding the new UK tax rules for non-UK domiciled individuals.
Table of Contents
- A New 4-Year Tax-Free Rule for new Arrivals
- Temporary Repatriation Facility (TRF): A second risk
- Capital gains Tax Rebasing
- Remote places Workday relief (OWR): nevertheless, Going strong
- Inheritance Tax (IHT)
- Expenses for Travel to UK for Work
- New PAYE rules for Global Employees
- What Should You Do Now?
A New 4-Year Tax-Free Rule for new Arrivals
Who Qualifies? If you’re new to United Kingdom and haven’t been resident within the previous 10 tax years you’re in good fortune.
What you get: 100% UK tax comfort on all eligible overseas income and gains (FIG) for your first 4 years within the UK.
No remittance regulations: You can keep that money outside the UK or bring it in either way it’s tax-free during those 4 years. Contact Taxaccolega for non-domiciled status.
Temporary Repatriation Facility (TRF): A second risk
If you’ve been the usage of the remittance basis then there’s a new option but before that what you need to do is get expert advice on non-domiciled tax planning 2025. Contact us and we will ensure compliance with new non-domiciled tax rules in 2025.
● You can bring in foreign income before 6 April 2025 and pay a lower tax rate.
● Pay just 12% tax within the first two years, and 15% in the third
● This option is called the Temporary Repatriation Facility (TRF) and is available for 3 years starting in April 2025.
● That is a first-rate opportunity for people with ancient offshore earnings to clean up their United Kingdom tax role at a significantly decreased fee.
Capital gains Tax Rebasing:
For disposals of foreign assets on or after 6 April 2025, individuals who’ve now not been United Kingdom domiciled or deemed domiciled before this date and feature claimed the remittance basis for as a minimum one of the tax years from 2017/18 to 2024/25 can choose to rebase the asset to its value as of 5 April 2017, for Capital gains Tax purposes.
Remote places Workday relief (OWR): nevertheless, Going strong
OWR isn’t going everywhere but it’s being refreshed beneath the brand new system:
● Available for the first 4 years of UK tax residence (if eligible under the new FIG regime)
● Applies to overseas employment income earned distant places
● You can bring that income into the UK later with no extra tax.
● However now, there’s a cap you can only claim on the lower of £300,000 or 30% of your qualifying work income each year.
Inheritance Tax (IHT):
The government is also replacing the domicile-based Inheritance Tax (IHT) rules with a residence-based system, from 6 April 2025:
● You’ll be concern to UK IHT on global assets in case you’ve been UK resident for 10 out of the last 20 years
Expenses for Travel to UK for Work
If you’re a non-resident coming to the UK for work, you can claim expenses related to your UK duties:
● Non UK residents: claim for up to 5 years
● Non UK residents: claim for up to 4 years
New PAYE rules for Global Employees
● From April 2025, employers will no longer apply to HMRC to reduce the income they use for UK tax (PAYE) for some international employees.
● Instead, employers will send a simple online form to HMRC to say how much income should be taxed.
● This makes things quicker and easier for both employees and companies.
What Should You Do Now?
At Taxaccolega, our expert team is here to guide you through the changes and help you prepare. We’ll work with you to make sure you’re compliant, tax-efficient, and ready for the new regime.
📞 Contact us today to discuss how the upcoming reforms may impact you or your clients.
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