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UK Non-Dom Changes: Are You Impacted?

Technical Guides • UK Non-Dom Changes: Are You Impacted?

  • Estate Planning

UK Non-Dom Changes: Are You Impacted?

Download our guide to explore the full implications and what you can do to prepare.

From April 6th, 2025, the UK Government will overhaul its long-standing Non-Domicile (Non-Dom) tax regime, replacing it with a residence-based system. These changes represent a fundamental shift for internationally mobile individuals with UK ties. If you're a current or prospective UK resident with foreign income or assets, it’s critical to understand how this affects you.

Key Changes at a Glance

  • End of the Remittance Basis:
    From April 2025, new and existing UK residents will no longer be able to use the remittance basis. Instead, eligible individuals may benefit from a four-year window where foreign income and gains are exempt—provided they haven't been UK tax residents in the last 10 years.

  • Loss of Personal Allowances:
    Those using the new regime will forfeit their personal tax-free allowances, including the Capital Gains Tax annual exemption.

  • Overseas Workday Relief:
    A new relief will be available for UK employees working abroad, offering income tax relief for the first three years of UK residence.

  • Transitional Reliefs & Temporary Repatriation Opportunity:
    For the 2025–26 tax year, a one-year transitional relief applies, and a special 12% tax rate will apply to foreign remittances made in 2025–26 and 2026–27.

  • Impact on Trusts & Inheritance Tax (IHT):
    IHT will become residency-based, applying to worldwide assets after 10 years of UK residence. Protections for non-UK trusts will also be withdrawn unless grandfathered under existing rules.

  • Capital Gains Tax (CGT) Rebasing & Assessments:
    Rebasing options and standard CGT rules will apply, with eligibility determined by statutory residence tests rather than domicile or treaty residence claims.

What You Need to Do

  • Determine your UK residency status from April 2025.

  • Review your trust structures, foreign income, and repatriation plans.

  • Consider whether transitional reliefs or repatriation opportunities are worth using.

  • Seek tailored advice to understand the financial and tax implications for your specific situation.

Why This Matters

For many international investors, expatriates, and global families, the UK has long been attractive due to its Non-Dom regime. With these sweeping changes, the landscape is shifting dramatically—making proactive planning more important than ever.

Let Our Experts Help You Navigate the Changes

Hoxton Wealth specialises in cross-border financial planning for globally mobile individuals. Our team can help you:

  • Assess your exposure to UK tax under the new regime

  • Identify and optimise available reliefs

  • Reconfigure your asset ownership and succession plans

Download the guide now to stay ahead of the curve.

For a complimentary consultation, contact enquiries@hoxtonwealth.com

Contact Hoxton Wealth

Contact us today to discover how Hoxton Wealth can help you achieve your financial goals. Together, we can build a brighter financial future.