PWM International

The current UK tax regime

On 6 April 2025, the UK abolished domicile-based tax rules for people who live in the UK but whose permanent home remains elsewhere. These rules were replaced with a residence-based foreign income and gains (FIG) regime. The new regime moves away from the concept of domicile to the more direct determination of residence to define a person’s UK tax status.

One of the most significant changes means that new UK residents do not pay tax on foreign income and gains for the first four years. After that period, they must pay the same tax on their foreign income and gains, regardless of their domicile status. There are also major changes that impact trusts and Inheritance Tax that will require a detailed review for both existing and future residents.

If you have questions regarding the new rules or if you have historical offshore income and gains, it’s important to seek advice as you may need to act before the new rules take effect.

Our team is on hand to help you navigate the new rules with wealth management advice that covers your assets both at home and abroad. We‘ll highlight the challenges and complexities that apply to your specific circumstances. Then we provide you with specialist investment services such as advice on optimising your affairs, offshore custody and portfolio management, multi-currency investments, and specialist portfolios, so you meet the latest reporting requirements (including if you are a US citizen).

Please get in touch with any of our International team for a no-obligation introductory meeting and hear how we can help you with your international financial considerations.