Hi Jmucjmuc,
The new 4-year Foreign Income and Gains (FIG) regime has been designed to attract newcomers to the UK and appeal to high-skilled workers and investors.
The regime will apply to individuals who become UK tax resident after a period of 10 consecutive years of non-UK residence.
Resident will be determined by the Statutory Residence Test (SRT) which can be found at
RDR3 Statutory Residence Test.
Qualifying individuals will be relieved from tax on any FIG arising in the first four tax years after becoming UK tax residents (with no limit) and will be able to bring these funds to the UK free from any additional charges.
They will pay tax on UK income and gains, as is the case for non-domiciled individuals now.
If an individual chooses to be taxed under the new 4-year FIG regime or claims Overseas Workday releif (OWR) which can be found at
RDR4 Overseas Workday Relief, they will lose their entitlement to their personal allowances and the capital gains tax annual exempt amount.
Individuals will need to make a claim for relief for income and gains in a tax return and will need to quantify the amount of FIG that is being relieved from tax.
A separate regime will apply to provide full relief for foreign employment income and employment related securities.
This will be a replacement for the current OWR.
Thank you.
