UK Non-Dom Status in 2026: What's Left After the Reforms

The UK's non-domiciled (non-dom) tax regime — which allowed certain residents to avoid UK tax on overseas income for years — was fundamentally reformed in April 2025. The old remittance basis is gone. In its place sits a new system that still offers benefits but on a far more limited basis.

The New Framework

From April 2025, new arrivals to the UK who have not been UK tax resident in the previous 10 years benefit from a 4-year Foreign Income and Gains (FIG) exemption. During these 4 years, foreign income and capital gains are not subject to UK tax, regardless of whether they are remitted to the UK.

After the 4-year window closes, all worldwide income and gains become fully taxable at standard UK rates (up to 45% on income, 24% on capital gains for higher-rate taxpayers).

Transitional Provisions

Existing non-doms who were using the remittance basis receive transitional reliefs:

• Temporary Repatriation Facility: Foreign income and gains accumulated before April 2025 can be brought to the UK at a 12% tax rate during a transitional window
• Rebasing: Foreign assets held on 5 April 2017 may be rebased to their April 2017 value for capital gains purposes

Impact on Expat Decisions

The 4-year window remains useful for international professionals on short-term London assignments. But the old strategy of living in the UK for 15+ years while keeping foreign income offshore is over. Many long-term non-doms are reconsidering whether the UK remains their optimal base — some are exploring moves to Italy, Switzerland, or the UAE.

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