The UK treatment of foreign income depends first on residence and the relevant reliefs. The four-year FIG regime replaced the remittance basis for qualifying new residents from 6 April 2025. Money staying abroad does not by itself establish that it is exempt.
Residence comes before the calculation
UK residents are generally taxable on foreign income, subject to relevant reliefs and exceptions. Non-residents have a different starting position. Establish your residence status for the year before deciding which income belongs on the return.
Foreign employment, rental income, bank interest, dividends and gains can require different treatment. List each source and the country involved rather than describing the total simply as money from abroad.
The foreign income and gains regime has conditions
From 6 April 2025, the four-year foreign income and gains regime replaced the remittance basis for qualifying new residents. Eligibility generally involves the first four years of UK residence after at least ten consecutive tax years of non-UK residence.
Relief is not automatic just because you moved to the UK recently. Claiming can mean losing the Income Tax Personal Allowance and Capital Gains Tax annual exempt amount, so compare the full outcome before claiming. Historic income arising before April 2025 can raise separate transitional questions.
Tax paid abroad is not automatically ignored or refunded
Foreign tax credit relief and double tax agreements can affect the UK result. Keep the foreign tax calculation and evidence of payment, not just the net amount received. Currency conversion and the relevant reporting period also need support.
For example, an overseas account statement covering a calendar year may need reconciling to the UK tax year. Transferring the balance to the UK later is not necessarily the event that determines when the underlying income is taxable.
Confirm specialist support before purchase
Tell TaxSimba about residence history, foreign income, gains, overseas tax and any earlier remittance-basis claims. Ask whether the case is accepted and what additional work is required. A standard personal return should not be assumed to include a residence analysis, treaty claim or complex transitional calculation without agreement.
Check the home nation used for your tax calculation
Tell the accountant whether you live in England, Scotland, Wales or Northern Ireland, and about any moves during the tax year. Scottish rates differ for wages, pensions and most other taxable income; savings and dividends use UK rules. Welsh rates are set separately. Use the rules for the relevant year and your actual taxpayer status.
See Scottish Income Tax and Welsh Income Tax. These differences do not make a London address or an England-only earnings example appropriate for everyone.
A FIG claim can also affect the MTD start
Some FIG cases qualify for a temporary 2026/27 MTD exemption through the SA109 rules. Check the required claim, return history and application route in the exemption guide. It does not remove annual reporting duties.
Create a residence and source timeline
Illustrative preparation example.
List residence history and foreign income by source, country and date, keeping foreign tax evidence alongside it. Flag earlier remittance-basis history separately. A total bank transfer to the UK cannot replace the facts needed to assess the income or a FIG claim.
Check: Which residence years, sources and transitional facts require specialist review?
| Check | Practical action |
|---|---|
| What is the residence history? | Establish the year's residence and relevant prior years before choosing a relief. |
| What income or gain arose in each country? | Separate sources, dates, currency and foreign tax evidence. |
| What would a FIG claim change? | Check eligibility, allowances and the complete outcome rather than assuming relief is always beneficial. |
Is foreign income automatically outside UK tax if left abroad?
No. Residence, source, timing and available reliefs matter. Keeping money overseas is not a universal exemption.
Does a standard return fee include residence and treaty analysis?
Do not assume so. Confirm specialist scope and pricing before commissioning complex work.
Download a checklist for this guide
- Prepare UK and overseas residence history.
- List each foreign source and country.
- Collect gross income, dates and tax-paid evidence.
- Identify earlier remittance-basis or transitional issues.
- Agree FIG, treaty and specialist calculation scope.