In this week’s Q&A, Abigail Bothe, adviser at Croner-i VIP Tax Team, explains the beneficial tax implications on overseas income under the foreign income & gains (FIG) regime
My client became a resident in the UK for the first time at the beginning of the 2025-26 tax year and they have interest arising from overseas over that period. What will their tax implications be on this overseas income in 2025-26?
UK residents are taxable on their worldwide income and gains. However, there are some special reliefs for new residents, known as the foreign income & gains (FIG) regime.
The FIG regime is designed to not tax qualifying new residence on qualifying overseas income and gains, which is claimed through self assessment.
Section 845B Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005) outlines who is a qualifying new resident for the FIG regime.
