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Abolition of the remittance basis from 6 April 2025

As expected, the Chancellor confirmed that the remittance basis will be abolished from 6 April 2025 and replaced with the foreign income and gains regime (FIG regime). As well as publishing a detailed technical paper, 103 pages of draft legislation for Finance Bill 2025 was also released.

In summary:

1. •

   the four-year FIG regime will be implemented, meaning that individuals in their first four years of UK tax residence will pay no UK tax on foreign income and gains arising in those tax years (including distributions from offshore trusts, but subject to the exceptions listed in paras 37–38 of the technical paper) as long as they had not been UK resident in the 10 years prior to their arrival. To benefit from the FIG regime, the individual will need to make a claim each tax year