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.

Separate foreign investments from employment

A person with a UK salary and foreign investment income needs two analyses. The four-year FIG regime concerns qualifying foreign income and gains; it is not a blanket exemption for ordinary employment earnings. The finder therefore does not deduct a percentage from a salary to invent FIG take-home pay.

What to establish before accepting an offer

Check the ten-year prior non-residence condition and which of the first four UK-residence years remain. Claims can affect allowances, and overseas employment duties have their own Overseas Workday Relief rules. A payment arriving from a foreign bank does not by itself determine its tax source.

These examples explain the tax mechanism. They assume the stated income qualifies and are not payroll quotations. Compare this with other schemes →