v256.0 · tax residency · GB · verified 2026-04
United Kingdom tax residency
Rules that determine when you become tax-resident in United Kingdom, the headline rates, and any HNW or expat special regime that softens the standard system.
Threshold
183 days/year
Taxation basis
worldwide (FIG 4-year regime since April 2025 replacing non-dom)
Top marginal rate
45% above £125,140 (England); 48% Scotland
Capital gains
18% basic / 24% higher (raised from 10/20% on Oct 30 2024 Budget); 18%/28% on residential
Special regime: FIG (Foreign Income & Gains) — 4-year regime since April 6, 2025
Non-dom remittance basis ABOLISHED April 6 2025. Replaced by 4-year FIG regime: new UK residents (not UK-resident in 10 prior years) get 100% exemption on foreign income + gains for first 4 tax years. Year 5 onwards: full worldwide taxation. Temporary Repatriation Facility (TRF) — pre-April 2025 unremitted income/gains can be brought to UK at 12% in 2025-26 and 2026-27 (rises 15% in 2027-28). Offshore trusts protection for non-dom settlors largely lost post-April 2025.
Rate landscape
| Dividends tax | 8.75% basic / 33.75% higher / 39.35% additional |
| Exit tax | No general exit tax for individuals; "temporary non-residence" anti-avoidance can reach back to gains realized abroad |
| Tax treaty network | 130+ jurisdictions |
| CRS (automatic info exchange) | Active since 2017 |
Recent regime changes (2023-2026)
NON-DOM ENDED April 6 2025 — landmark Labour government reform. FIG 4-year regime now applies. Inheritance Tax shifted from domicile-based to residence-based (10+ year residence rule). CGT rates raised Oct 2024 Budget. Stamp duty surcharge for foreign property buyers raised April 2025. Pillar Two QDMTT implemented 2024.
Strengths
- FIG 4-year clean exemption beats most jurisdictions for short stays
- 130+ treaty network — largest among major economies
- TRF 12% rate on legacy non-dom funds 2025-27 — one-time windfall
- Stable common-law jurisdiction with deep capital markets
- World-class universities, healthcare, and cultural infrastructure
Drawbacks
- After year 4 → full worldwide taxation 45% + CGT 24% no shelter
- IHT residence-based rule means 10+ year residents face 40% on worldwide estate
- Investment Visa (Tier 1) closed 2022 — no clear HNW immigration route remaining
- Sharp 60% effective rate band £100-125,140 (personal allowance taper)
- CGT rates raised twice 2024-25, regulatory direction uncertain
Top cities for tax-residency seekers
London Manchester Edinburgh Bristol Cambridge
Source: official United Kingdom tax authority page · Last verified 2026-04
See also: full United Kingdom country profile · full tax-residency atlas