Changes to Non-Domicile Tax Rules – What You Need to Know (Without the Headache)

A heads-up about a big change coming to UK tax rules from 6 April 2025. If you’ve been claiming non-domicile status and using the remittance basis, things are about to shift.

Here’s the short version:

• The non-dom status is being scrapped. From April 2025, everyone who lives in the UK and is tax resident will be taxed on worldwide income and gains, no matter where it’s earned or whether it’s brought into the UK.

• If you’re new to the UK and haven’t lived here for the past 10 years, you might qualify for a 4-year relief on foreign income and gains. It’s a nice break while you settle in, but it’s only for those who are just arriving or recently arrived.

• For those who’ve been using the remittance basis, there’s a temporary option to bring in old foreign income and gains at a lower tax rate (12% or 15%) for a few years. It’s called the Temporary Repatriation Facility – worth looking into if you’ve got unremitted income abroad.

If you’ve got foreign shares, property, or other overseas income, this could affect how and when you’re taxed. It’s a good time to start planning.

I’ll be reaching out to clients who are affected, but if you’re unsure or want to chat through your situation, just drop me a message. We’ll keep it simple and make sure you’re ready for the change.