United Kingdom: 4-year Foreign Income and Gains (FIG) regime

Who it is designed for

Qualifying new UK residents after at least 10 consecutive tax years of non-UK residence

How the tax treatment works

Eligible foreign income and gains can be claimed free of UK tax during the first 4 UK-resident tax years. The exact tax result depends on your income mix, social-security position, deductions and whether every entry condition remains satisfied.

What to check before relying on it

• Must be within the first four UK-resident tax years after at least 10 consecutive tax years of non-UK residence.
• A claim is made for each tax year and for the eligible foreign income and/or gains chosen.
• Claiming FIG relief affects access to some allowances and reliefs.
• Foreign employment income can interact with Overseas Workday Relief.

Where this regime can matter

The practical value of a special regime is the difference it creates over the period you expect to remain in the country. Compare the qualifying years with the ordinary tax system that applies before or after the relief, and separate employment income from investment, foreign-source and other income that may follow different rules. A strong headline rate can be less valuable if the route is short, difficult to maintain or does not cover the income that matters most to you.

Questions to answer before you rely on it

• Do I satisfy every prior-residence and arrival condition?
• Which parts of my remuneration are actually covered?
• Who must apply, and what is the deadline?
• What happens if I change employer, role or residence status?
• What tax and social-security rules apply when the special period ends?