Global experts in wealth advisory and financial planning for expats, Chase Buchanan Private Wealth Management, have stressed the need for improved awareness about the rules and restrictions linked with the newly announced Foreign Income and Gains (FIG) Tax Relief system.
Following the UK government's reforms to the non-dom tax system and the introduction of the FIG regime in April, the company's international teams have received spikes in enquiries and requests for support, with many unclear about the restrictions and time constraints that apply.
Exploring Issues With Misconceptions About the UK FIG Tax Reliefs
In April 2025, sweeping changes meant that many foreign nationals resident in the UK, and those living overseas who were considering a move or return, faced significant impacts to their tax positions, with the updates summarised as follows:
- Eligible applicants living in or moving to the UK as tax residents can claim tax relief against British taxation on foreign incomes and gains for their first four years of residency.
- Foreign nationals already resident in the UK can apply for these tax reliefs from the 2025/26 tax year onward, including those who become residents between the 2022/23 period and now.
As Lee Eldridge, Group CEO and Head of Investment Advisory, explains, ‘These rules seem, at first glance, to be incredibly attractive, particularly for individuals and families with a high net worth who could perceive that moving to the UK will mean they are effectively exempt from paying tax on multiple cross-border and overseas income sources.
However, we are keen to stress that decisions about relocations should always be supported by financial professionals and tax advisers, because the scope for error is considerable. We have, for instance, consulted with expats who had believed the FIG reliefs applied to their affairs, only to find that previous residency periods mean they do not qualify at all.
Likewise, qualifying for tax reliefs also means sacrificing other tax allowances. In some cases, this might be a compromise worth making, but in others could have a detrimental effect on whole-estate tax exposure, which is why it’s strongly advisable to seek proper support to ensure you have clarity about all the options available to you.’
Understanding the Criteria and Conditions Linked to Non-Dom Tax Regime Reforms
The restrictions associated with the FIG regime are potentially complex, depending on an individual’s tax profile, but include the following:
- Individuals who wish to claim tax relief must have been non-residents for at least 10 consecutive years.
- Domiciliary status is no longer a consideration, which means access to tax reliefs will depend on tax residency, regardless of nationality.
- FIG reliefs do not apply automatically and must be claimed correctly to ensure those eligible receive the resulting reliefs.
- Reliefs apply to foreign income and gains for up to four years, which means assets can be transferred to the UK tax-free. However, this does not exempt individuals or estates from tax levies arising at the point of origin. There is also no obligation to transfer assets or income.
Eldridge adds, ‘It’s common for there to be misunderstandings when a brand new tax relief is introduced. That's because exclusions apply, and even where UK-based tax reliefs are available, there may be other considerations, such as exit taxes and exposure to wealth taxes, which could remain payable regardless of reductions in a UK tax liability.
Another relevant example is where individuals assume tax reliefs will be advantageous, only to discover that claiming against the FIG regime means they lose entitlement to other tax allowances, including the UK Personal Allowance and annual Capital Gains Tax exemptions.’
How to Access Independent Advice About Claiming FIG Tax Relief
Eldridge says, 'We’d suggest every expat or UK citizen planning ahead speak with one of our specialists who is well-versed in both UK tax law and the regulations applicable in their current country of residence if they are living elsewhere.’
Chase Buchanan Private Wealth Management has offices across Europe and North America, supported by a UK Administration Centre. Its teams of wealth managers and advisers offer a comprehensive range of support and can organise remote consultations where necessary to ensure expats around the world gain the assistance they require.
Those seeking advisory input are welcome to schedule a call with their preferred or local Chase Buchanan team or can find contact details for each international office via the company’s website.
Read more about Chase Buchanan - Chase Buchanan Private Wealth Management Publishes Informative ‘Moving to France’ Webinar for 2025
About Chase Buchanan Private Wealth Management
Chase Buchanan is a highly regulated wealth management company that specialises in providing global finance solutions for those with a global lifestyle. We are global financial advisers, supporting expatriates around the world from our regulated European headquarters, and local offices across Belgium, Canada, Canary Islands, Cyprus, France, Malta, Portugal, Spain, UK and the USA.
All investments carry risk, including the potential loss of capital. You should carefully consider whether investing is suitable for you, taking into account your personal circumstances, financial situation, and risk tolerance.
Chase Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15.
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Chase Buchanan Ltd
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Source: Digital PR
Release ID: 1843993
