UK Non-Dom changes, 4-year FIG regime & Inheritance Tax explained simply
A simple guide to the new 4-year tax-free foreign income rule (FIG) and 10-year UK Inheritance Tax rules for expats.
Short answer: The UK has changed its tax rules for expats and foreign income. If you lived outside the UK for 10 straight years, you can now bring 100% of your foreign income and profits to the UK tax-free for your first 4 years (the FIG regime). At the same time, if you live in the UK for 10 years, UK Inheritance Tax (40%) applies to your worldwide assets. Matthew checks your timeline before you move so you save tax and protect your money.
Key points
- The old Non-Dom rules are gone. They are replaced by the new 4-year FIG rule.
- If you lived abroad for 10 years, you can bring foreign income to the UK 100% tax-free for 4 years.
- Inheritance Tax (IHT) now depends on how many years you live in the UK.
- If you live in the UK for 10 out of 20 years, UK tax applies to all your global assets when you die.
- If you leave the UK, this tax can stay with you for 3 to 10 more years (the IHT tail).
- Matthew checks your dates before you move to keep your money safe.
The 4-Year Foreign Income & Gains (FIG) rule
The UK has a new 4-year rule for people moving to Britain.
If you lived outside the UK for at least 10 years in a row, you do not pay UK tax on money you make outside the UK during your first 4 years back.
You can bring this money into the UK to buy a house, invest, or spend with zero extra UK tax.
The 10-year UK Inheritance Tax (IHT) rule
Inheritance Tax is the tax paid on your money and property when you die. The UK now uses a residence rule instead of domicile:
How long UK Inheritance Tax stays with you after you leave Britain
| Years you lived in the UK (in last 20) | Years UK tax applies after leaving |
|---|---|
| 10 to 13 years | 3 years after leaving |
| 14 years | 4 years after leaving |
| 15 years | 5 years after leaving |
| 16 years | 6 years after leaving |
| 17 years | 7 years after leaving |
| 18 years | 8 years after leaving |
| 19 years | 9 years after leaving |
| 20+ years | 10 years after leaving |
- The 10-Year Rule: If you live in the UK for 10 out of 20 years, 40% UK tax applies to all your money and property worldwide.
- The Tail After Leaving: When you move away from the UK, this rule stays active for 3 to 10 years after you leave.
- UK Homes and Property: Property located in the UK always has UK Inheritance Tax, no matter where you live.
Bringing older foreign savings to the UK (TRF)
Do you have older foreign savings that were never taxed in the UK? HMRC offers a special temporary rule called the Temporary Repatriation Facility (TRF).
This lets you bring older foreign money into the UK at a much lower tax rate.
Check your dates and tax rules before you move...
Matthew reviews your complete 10-year timeline and foreign bank accounts before you fly. This makes sure you use the 4-year tax-free rule and protect your money from UK inheritance tax.
Written and reviewed by Matthew S Manderson CTA ATT AMIT
Reviewed 3 September 2026. General guidance only; tax treatment depends on individual facts.