Returning to the UK: plan before residence starts
Pre-return UK tax planning for British expats and people moving back to the UK.
Planning before you return is essential. If you lived abroad for 10 years, you can use the new 4-year tax-free foreign income rule (FIG regime). Matthew checks your dates so you bring money home without surprise tax.
What to review before returning
- Likely arrival date and split-year tax rules
- Residence history and qualifying for the 4-year tax-free FIG rule
- Overseas bank accounts, investments, businesses and property
- Income or profits expected before and after your arrival date
- The 5-year temporary non-residence rules
- First-year UK tax return and disclosure requirements
How the review works
- 1
Reconstruct residence history
Confirm the years you were—and were not—UK resident.
- 2
Model the arrival year
Review arrival dates, homes, work and UK ties.
- 3
Review assets and events
Identify income, gains and distributions requiring advice.
- 4
Create the return plan
Document claims, records and filing actions for the first year back.
What you receive
- A pre-arrival action plan
- FIG eligibility reviewed
- Risks identified before the move
- A first-year filing plan
Frequently Asked Questions
What is the 4-year Foreign Income and Gains (FIG) regime for returning expats?
Effective from 6 April 2025, individuals who return to the UK after at least 10 consecutive tax years of non-residence can opt into the 4-year FIG regime. Under this regime, 100% of foreign income and gains can be remitted into the UK without paying any UK tax for the first four tax years of residence.
What triggers the 5-year Temporary Non-Residence rule upon returning?
If you were UK tax resident in four of the seven tax years prior to leaving and return to the UK within five years (or five complete 12-month periods), certain gains realised while abroad (such as on shares or assets held before departure, close company dividends, or lump sum pension withdrawals) become taxable in the year of return.
How does Split-Year treatment work when moving back to the UK?
Under Cases 4 to 8 of the Statutory Residence Test, your arrival year is split into an overseas part and a UK part from the date you establish your only home, start full-time UK employment, or cease overseas full-time work. Foreign income earned before your arrival date is not taxable in the UK.
How should I structure my overseas bank accounts before moving back to Britain?
Before your UK arrival date, separate pre-arrival capital from post-arrival income streams. If you do not qualify for the 10-year FIG regime, keeping unmixed capital in designated accounts allows you to bring savings into the UK without triggering inadvertent income tax liabilities.
Do I pay UK tax on my foreign pension or overseas savings when moving back?
Once you become UK tax resident, HMRC taxes your worldwide income, including overseas private pensions, state pensions, and foreign savings interest, unless sheltered by the 4-year FIG regime or eligible for Double Taxation Treaty relief. Timing lump-sum drawdowns before arrival is often advantageous.
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