FIG regime UK: eligibility and compliance explained

For time-pressed advisers, applying the new rules consistently, defensibly, and at volume across client portfolios requires the right framework and technology support.

The removal of the remittance basis has reset how foreign income and gains are treated.

Under the foreign income and gains regime:

• UK-resident clients are taxed on worldwide income and gains as they arise
• Deferral through offshore structures is no longer available in the same way from 2025/26
• Relief sits within the FIG regime UK rules and must be actively claimed

The practical impact is immediate. As more taxpayer clients seek advice on eligibility, accounting firms will need to manage greater volumes of data and ensure it is analysed and reported correctly.

One question drives most client outcomes: Does this client qualify for FIG relief, and are they within the window?

Firms understand this logic well. The challenge is embedding it into consistent, repeatable processes that scale across your practice.

A simple decision flow helps structure that conversation:

The FIG regime creates a defined, time-limited planning window.

For qualifying clients:

• Foreign income and gains may be exempt for up to four years
• Funds can be brought into the UK without additional tax during that period
• Timing of income and disposals becomes more important
• Former remittance basis users may bring pre-April 2025 foreign income and gains into the UK at a reduced flat rate (12–15%) via the Temporary Repatriation Facility — available until April 2028.

However, the decision to claim is rarely straightforward. Relief comes with trade-offs, including the loss of certain UK allowances in that tax year.

This makes comparison essential. Advisers need to assess outcomes across different scenarios, not just confirm eligibility.  The firms that do this well will stand out. The rules are widely available, the application still requires professional judgement.

The compliance expectations under the new framework are clear and more demanding.

Firms must now ensure:

• All foreign income and gains are identified and reported
• FIG claims are made actively and correctly through Self Assessment
• Evidence supports eligibility and the advice given

The volume of data increases, and accuracy requirements become more rigorous.

In practice, this means:

• Collect client data earlier in the process
• Build clearer internal decision frameworks
• Structure documentation more rigorously

The foreign income and gains regime sits alongside other changes that affect the same client base:

• Overseas Workday Relief continues in a revised and capped form
• Trust protections for foreign income have largely fallen away
• Inheritance Tax increasingly follows residence for long-term UK clients

These connections matter. Decisions taken during the FIG period can influence long-term tax exposure.

For firms looking to act without overcomplicating things:

• Identify clients with foreign income or recent UK arrival
• Map potential FIG eligibility and timelines
• Check how current processes capture and evidence foreign income

That advantage will come from acting early and building workable processes before the first filings.

Thomson Reuters Digita Personal Tax includes our unified HMRC-recognised Making Tax Digital for Income Tax software and supports the Foreign Income and Gains (FIG) regime changes.