If you are Non-UK domiciled, under current rule you can elect for remittance basis to pay for tax on your foreign income or gains only when you remitted to the UK.
However, from April 2025, under new Tax rules for Non-domiciled, New Non-UK domiciled will need to pay for tax on worldwide income & gains like UK domiciled, after 4 years of UK resident.
Transition rules from the old regime to the new system:
Temporary 50% reduction:
- For Non-UK domiciled who will lose remittance basis on 6 April 2025 and is not eligible for the new 4-year Foreign and Gains exemption regime, will have temporary 50% reduction on foreign income subject to tax in 2025-26.
Re-basing of capital assets to 5 April 2019 levels:
- For current Non-UK domiciled who has claimed remittance basis, can elect for re-basing capital assets to 5 April 2019 levels for disposals that take place after 6 April 2025.
New Temporary Repatriation Facility:
- Non-UK domiciled will be able to remit foreign income and gains that arose before 6 April 2025 to the UK at a rate of 12% under a new Temporary Repatriation Facility in the tax years 2025-26 and 2026-27.