Five Questions Every Returning UK nationals Should Ask About the FIG Regime

1. Have I been non-UK resident for long enough?

The FIG regime is available to individuals who have been non-UK resident for at least 10 consecutive tax years before becoming UK resident again. While this may sound straightforward, determining residence status can be more complex than expected, particularly for frequent business travellers, commuters, and those who have retained UK ties while living abroad.

Before making plans to return, it is worth reviewing your residence position carefully to confirm whether you meet the qualifying conditions.

2. What foreign income and gains do I expect to receive?

One of the key benefits of the FIG regime is that qualifying individuals can receive foreign income and gains free from UK tax during their first four tax years of UK residence.

This makes it particularly important to identify potential sources of overseas income before relocating, such as:

• Rental income from overseas property
• Investment portfolio income
• Foreign dividends
• Interest from offshore accounts
• Capital gains from planned asset disposals

Understanding the income you expect to receive in the future can and planning ahead can help ensure tax planning opportunities are not missed.

3. Should I accelerate or delay certain transactions?

Returning individuals may wish to consider whether significant transactions, such as the sale of overseas investments, receipt of dividends, or restructuring of foreign assets, should take place before returning to the UK or during the FIG relief period.

Without advance planning, transactions that could potentially have fallen within the relief period may instead become fully exposed to UK taxation.

4. How does the Fig regime interact with my global tax position

If you have to file tax returns in locations other than the UK, how do any claims for relief under the FIG regime interact with your global tax position? Reviewing the global, holistic position before your return can prevent any unexpected surprises.

5. What happens after the four-year relief period ends?

While much attention has focused on qualifying for FIG relief, individuals should also plan for life after the four-year window closes.

Future exposure to UK tax on worldwide income and gains may influence decisions around:

• Long-term UK residence
• Investment structures
• Asset disposals
• Retirement planning
• Future international moves

Having a plan for what happens in year five from the outset can help prevent future complications.

One thing to remember

The FIG regime is complicated, for many returning UK nationals, while the FIG regime presents a valuable opportunity to return to the UK without an immediate UK tax charge on foreign income and gains, eligibility, timing and planning remain critical and tax planning advice should be taken in advance of any move back to the UK.

How can we help?

If you are considering a return to the UK, early planning is key. Our specialists can review your eligibility for the FIG regime, assess your foreign income and gains, consider the timing of your return and significant transactions, and help you plan for your longer-term UK tax position.