RFIG44000 - FIG regime: Qualifying new resident
Source: gov.uk (2025-11-27)


Overview (#Overview)

Definition of qualifying new resident (#Definition of qualifying new resident)

Treaty non-residence and split year treatment (#Treaty non-residence and split year treatment)

A period of non-residence during the first 4 years (#A period of non-residence during the first 4 years)

Members of the House of Commons or House of Lords (#Members of the House of Commons or House of Lords)

Overview

An individual can make a claim under the FIG regime for a tax year if they are a ‘qualifying new resident’ for that year. In many cases qualifying new residents will be individuals who are becoming resident in the UK for the first time, but an individual can be a qualifying new resident if they have previously lived in the UK, but then leave for an extended period and subsequently return to the UK.

Providing an individual meets the criteria set out below they can make a claim under the FIG regime regardless of their nationality or domicile.

Definition of qualifying new resident

Section 845B ITTOIA 2005

When an individual first comes to, or returns to, the UK, they are a qualifying new resident for a tax year if they meet all of the following criteria:
- they are UK resident in the tax year
- they have not been UK resident for at least 10 consecutive tax years immediately before the tax year
- they are not a member of the House of Commons or House of Lords for any part of the tax year
For subsequent years an individual is a qualifying new resident for a tax year if they meet all of the following criteria:
- they are UK resident in the tax year
- the tax year is one of the 3 tax years immediately following the first tax year in which an individual was a qualifying new resident
- they are not a member of the House of Commons or House of Lords for any part of the tax year
Although the FIG regime was introduced on 6 April 2025, an individual can be a qualifying new resident for any of the 2022-23, 2023-24 or 2024-25 tax years for the purposes of making claims under the FIG regime for tax years from 2025-26 onwards. This does not mean that an individual can make a claim to relieve any of their foreign income and gains arising in those earlier years.

UK residence is determined by the statutory residence test (SRT) for tax years 2013-14 onwards – see RFIG20000 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig20000) onwards. Individuals who became resident in the 2022-23 tax year may need to consider their residence position for the 2012-13 tax year, and should refer to HMRC6 (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/430830/hmrc6.pdf) guidance in the first instance.

Example 1

Adeel has never been resident in the UK. He moves to the UK on 6 April 2025 and is UK resident for the 2025-26 tax year.

Adeel is a qualifying new resident because he is UK resident in 2025-26 and he had not been UK resident for at least 10 consecutive tax years immediately before 2025-26. Therefore, he can claim under the FIG regime for relief on his foreign income and gains arising in 2025-26.

If he wants to, Adeel could also make claims in the 2026-27, 2027-28 and 2028-29 tax years if he remains UK resident for those years, as in those years he would be a qualifying new resident because they are the 3 tax years immediately following the first tax year in which he was a qualifying new resident (2025-26). Adeel will need to make a claim for each year he wants to relieve his income, gains, or both, but does not have to make a claim for all or any of the years (see RFIG42100 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm11000)). Whether or not Adeel makes any claims for relief in those years, he would not be a qualifying new resident in 2029-30 because 2029-30 is not one of the 3 tax years immediately following the first tax year in which he was a qualifying new resident.

Example 2

Marie has a UK domicile and lived in the UK for the first 40 years of her life. In 2013-14 she moved to Australia and spent 11 years working there. She was non-UK resident in all tax years from 2013-14 to 2023-24 inclusive. Marie returned to live in the UK on 6 April 2024 and was UK resident for the 2024-25 year. She is taxed on the arising basis in 2024-25.

In 2025-26 Marie has remained UK resident, and because she has foreign investment income and a foreign gain from selling her Australian property in the 2025-26 tax year, she wants to claim relief under the FIG regime.

Marie would first have become a qualifying new resident in 2024-25, because she was UK resident in 2024-25 and she had not been UK resident for at least 10 consecutive tax years immediately before 2024-25. However, Marie could not claim relief for any foreign income or gains arising in that year because she is not able to make a claim under the FIG regime before the 2025-26 tax year.

Marie is also a qualifying new resident in 2025-26 because she is UK resident, and 2025-26 is one of the 3 tax years immediately following the first tax year in which she was a qualifying new resident (2024-25). Therefore, she can claim under the FIG regime for relief on her foreign income and gains arising in 2025-26.

If she wants to, Marie could also make claims in the 2026-27 and 2027-28 tax years if she remains UK resident for those years, as in both years she would be a qualifying new resident. However, she could not claim in 2028-29 even though she has only been able to make claims for 3 years under the FIG regime, because 2028-29 is not one of the 3 tax years immediately following the first tax year in which she was a qualifying new resident, so she would not be a qualifying new resident in 2028-29.

Example 3

Konstantin has a non-UK domicile, and whilst living in the UK for several years prior to the 2013-14 tax year, he was subject to the remittance basis and kept most of his foreign income and gains offshore. On 6 April 2013 he returned to Greece and remained there until he returned to the UK on 6 April 2023. He was non-UK resident for all tax years from 2013-14 to 2022-23. He was UK resident for both the 2023-24 and 2024-25 tax years, and was again subject to the remittance basis, keeping his foreign income and gains offshore.

Konstantin would first have become a qualifying new resident in 2023-24, because he was UK resident in 2023-24 and he had not been UK resident for at least 10 consecutive tax years immediately before 2023-24. However, Konstantin could not claim relief for any foreign income or gains arising in that year, or in 2024-25, because he is not able to make a claim under the FIG regime before the 2025-26 tax year.

Konstantin is also a qualifying new resident in 2025-26 because he is UK resident, and 2025-26 is one of the 3 tax years immediately following the first tax year in which he was a qualifying new resident. Therefore, he can claim under the FIG regime for relief on his foreign income and gains arising in 2025-26.

However, Konstantin is not able to claim relief for any foreign income and gains which arose prior to 6 April 2025, in either period he was using the remittance basis, whether or not he remits them during a period when he is a qualifying new resident or after. This is the case even though he was a qualifying new resident in 2023-24 and 2024-25. Any foreign income and gains taxed on the remittance basis which Konstantin remits during a year when he is a qualifying new resident (or after) will need to be declared in his tax return, no relief can be claimed, and he will pay tax at the usual tax rate. Alternatively, Konstantin may want to use the temporary repatriation facility (TRF) to take advantage of a lower tax rate by designating his pre-6 April 2025 foreign income and gains and paying the TRF charge – see RDRM71000 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm71000) onwards.

Konstantin is free to keep offshore or bring to the UK any amounts that arose in 2025-26 which were relieved by a claim under the FIG regime. The relief available to him will be the same whether he brings the amounts to the UK or not, and no further tax charges will arise if he does bring any relieved funds to the UK.

Treaty non-residence and split year treatment

Treaty non-residence (see RFIG50300 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig50300)) and split year treatment (see RFIG21010 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig21010)) are ignored for the purposes of the residence criteria, both in considering the tax year of claim and the 10 or more consecutive tax years of non-UK residence.

This means that an individual who is UK resident under the SRT (or see HMRC6 for 2012-13) will be UK resident for the purposes of considering the criteria, regardless as to whether an individual could have been deemed resident in another jurisdiction as a result of any tie-breaker test in the Double Tax Agreement (DTA) the UK has with the other jurisdiction, or any relief the individual may have been able to claim under section 6 TIOPA 2010.

Any year in which split year treatment applies will be a full year of UK residence for the purposes of the residence criteria, even though there is an overseas part of the year for split year treatment, because the individual is resident under the SRT for the full tax year.

Example 4

Allegra is domiciled and previously resident in Italy, and came to the UK for the first time in 2017-18 to work under a one-year contract which ended on 5 April 2018. Allegra was UK resident under the SRT for the 2017-18 tax year. As she was also resident in Italy under Italian domestic legislation her residence was determined under the DTA between the two countries and she was deemed to be resident in Italy.

Allegra moves to the UK permanently in 2025-26. As she does not have a period of at least 10 consecutive tax years of non-UK residence prior to her arrival she is not a qualifying new resident in 2025-26. This is because 2017-18 is a year of residence for the purposes of the criteria, because she was resident under the SRT, even though she was treaty resident in Italy. Therefore, she cannot claim relief under the FIG regime in 2025-26 or any subsequent years, unless she leaves the UK in future for a period of at least 10 consecutive tax years.

If Allegra were to wait until the 2028-29 tax year before returning to the UK, instead of arriving in 2025-26, she would be a qualifying new resident in the 2028-29, 2029-30, 2030-31 and 2031-32 tax years.

Example 5

Claude had been resident in the UK but left on 15 November 2015. He was resident in the 2015-16 tax year under the SRT, but split year treatment applied for that year, with the overseas part of the year starting on 15 November 2015. The 2015-16 tax year is a full year of residence for the purposes of the FIG regime criteria, so Claude would not be a qualifying new resident if he were to become UK resident again in the 2025-26 or any earlier tax year, as he will not have been non-UK resident for at least 10 consecutive tax years prior.

Claude returns to the UK on 15 October 2027, having been non-UK resident in all the years following his departure. Claude is UK resident under the SRT for the 2027-28 tax year, and split year treatment applies to that year, with the UK part of the year starting on 15 October 2027. Claude is a qualifying new resident because he is UK resident for 2027-28 and he had not been UK resident for at least 10 consecutive tax years immediately before 2027-28. Therefore, he can claim under the FIG regime for relief on his foreign income and gains arising in 2027-28.

Due to the application of split year treatment Claude may not need to declare and claim relief on income and gains arising in the overseas part of the 2027-28 tax year as these may not be taxable. However, he can still make a claim under the FIG regime in respect of any taxable income and gains arising in the overseas part of the year, providing the income and gains qualify for relief (see RFIG45100 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig45100) and RFIG45500 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig45500)).

A period of non-residence during the first 4 years

If an individual meets the criteria to be a qualifying new resident in their first year of coming to, or returning to, the UK, they do not have to be a qualifying new resident for all of years 2, 3 and 4 to make a claim for any of those years in which they are a qualifying new resident. If an individual who is a qualifying new resident in year 1 is non-UK resident in year 2, they will not be a qualifying new resident in year 2 and the FIG regime would not be available to them for year 2. However, if they return to the UK in year 3, they will be a qualifying new resident in year 3 and be able to make a claim under the FIG regime for year 3.

Where an individual is not a qualifying new resident for one of years 2,3, or 4, they will not be able to roll that year over to a later year of UK residence even though they have not been able to claim under the FIG regime for all 4 years due to their residence status.

The temporary non-residence rules (see RFIG21510 (https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig21510)) will not apply to individuals who become temporarily non-resident in their first 4 years of coming to or returning to the UK, as they will not meet the requirement that an individual was UK resident for at least 4 out of the 7 tax years preceding the year of departure.

Example 6

Bassim has previously been resident in the UK but moved to Italy on 6 April 2013 to further his career in fashion. He was non-UK resident for all tax years from 2013-14 to 2025-26. He returned to the UK on 6 April 2026 and is UK resident for 2026-27. Bassim is a qualifying new resident in 2026-27, because he is UK resident and he had not been UK resident for at least 10 consecutive tax years immediately before 2026-27. He can claim under the FIG regime for relief on his foreign income and gains arising in 2026-27.

In May 2027 Bassim receives an exciting job opportunity in Croatia and leaves the UK to pursue it. It is a temporary position for one year so he is only non-UK resident for the 2027-28 tax year. Bassim does not meet the criteria to be a qualifying new resident in 2027-28 because he is non-UK resident, so he cannot make a claim under the FIG regime in 2027-28.

When Bassim returns to the UK in May 2028 he resumes UK residence. Bassim is a qualifying new resident in 2028-29 because he is UK resident, and 2028-29 is one of the 3 tax years immediately following the first tax year in which he was a qualifying new resident (2026-27). He can claim under the FIG regime for relief on his foreign income and gains arising in 2028-29. It does not matter that he was non-UK resident for the 2027-28 tax year.

If he wants to, Bassim could also make a claim in the 2029-30 tax year if he remains UK resident for that year, as he would be a qualifying new resident. However, he could not claim in 2030-31 even though he has only been able to make claims for 3 years under the FIG regime, because 2030-31 is not one of the 3 tax years immediately following the first tax year in which he was a qualifying new resident, so he would not be a qualifying new resident in 2030-31.

Members of the House of Commons or House of Lords

Part 4 of the Constitutional Reform and Governance Act 2010 provides that members of the House of Commons and House of Lords are deemed resident in the UK for the purposes of Income Tax, Inheritance Tax and Capital Gains Tax. This means that although an individual may be non-UK resident under the SRT, if they are deemed resident for a tax year by the 2010 Act then this would be a year of residence for the purposes of the FIG regime criteria, and may mean an individual does not have 10 consecutive tax years of non-UK residence.

An individual who comes to or returns to the UK after a period of 10 consecutive tax years of non-UK residence, who was not a member of the House of Commons or House of Lords during that period, but takes up a seat in either House in their year of arrival, would not be a qualifying new resident because members cannot be qualifying new residents.

Example 7

Alys had been a UK resident for many years and was a member of the House of Lords. She became non-UK resident in 2013-14 but retained her seat. On 15 December 2015 she resigned from the House of Lords.

Although Alys was non-UK resident under the SRT for the 2013-14, 2014-15 and 2015-16 tax years, she is treated as UK resident in those years, even though she was a member of the House of Lords for only part of the 2015-16 tax year. Therefore, Alys would not be a qualifying new resident if she were to become UK resident again in the 2025-26 or any earlier tax year, as she will not have been non-UK resident for at least 10 consecutive tax years prior.

Alys returns to the UK on 6 April 2027, having been non-UK resident in all the years following her departure. Alys is a qualifying new resident because she is UK resident for 2027-28, she had not been UK resident for at least 10 consecutive tax years immediately before 2027-28, and she is not a member of either the House of Lords or House of Commons in the 2027-28 tax year. Therefore, she can claim under the FIG regime for relief on her foreign income and gains arising in 2027-28.

Alys can also claim relief in the 2028-29, 2029-30, and 2030-31 tax years if she remains UK resident, unless she takes up a seat in the House of Lords or House of Commons in one or more of those tax years, in which case she would not be a qualifying new resident for whichever tax year or years she is a member of either House.