UK Tax Residency and the FIG Regime: A Framework for Long-Term Movers

Who Should Read This

If you are considering moving to the UK, already hold a BNO visa or another visa and plan to stay long term, or have rental income, overseas assets or investment income in the UK, then your UK Tax Resident status is the threshold question that determines which taxes you need to pay in the UK and how you need to report them.

This article is for: readers from Hong Kong, Taiwan and the wider Chinese-speaking world who are planning to relocate to or live long term in the UK; people with income sources in both the UK and elsewhere; and anyone assessing their finances after a move, including how to handle overseas assets, rental income or existing funds.

This article is a framework introduction. Our goal is to help you understand the basic logic of this system, so you know the outline of the issue and can speak the same language when discussing it with a tax professional. The specific determination for an individual is highly case-by-case; you should consult a qualified tax adviser.

Core Framework

Step One: Use the Statutory Residence Test to Determine Your Status

UK individual tax residency status is decided by a legal framework called the Statutory Residence Test (SRT). The SRT is calculated independently for each UK Tax Year — the tax year runs from 6 April to 5 April the following year, not the calendar year.

A few things are worth clarifying before understanding the SRT:

The SRT is not the same as a visa, and not the same as Domicile. Holding a UK visa, having a UK address, or even owning UK property does not by itself tell you whether you are a UK tax resident. The SRT is an independent test; it operates separately from immigration entry/exit records and visa categories, and separately from the concept of Domicile in UK law.

The overall logic of the SRT can be broadly understood as three layers:

Layer one: if you spend more than 183 days in the UK in a given tax year, you will generally be treated as a UK Tax Resident. This is the most direct of the Automatic UK Tests, but it is only one part of the overall SRT framework.

Layer two: if you spend fewer than 183 days in the UK, you do not automatically become a Non-Resident. The system first looks at whether you meet the Automatic Overseas Tests; if not, it then looks at whether you meet other Automatic UK Tests, before moving on to the Sufficient Ties Test.

Layer three: the Sufficient Ties Test only comes into play when the automatic tests above cannot give a clear result. It combines the various “ties” you have to the UK — including a Family Tie, Accommodation Tie, Work Tie, 90-Day Tie and Country Tie — together with your actual number of days in the UK, to determine your status. This test can find you to be a UK Tax Resident even at a day count well below 183, and the threshold differs depending on whether you are a Previous Resident (someone who was previously a UK tax resident) or an Arriver (someone newly moving to the UK).

How days are counted. A UK Day is generally counted based on whether you are in the UK at midnight, not on entry or exit stamp dates. Special situations such as Exceptional Circumstances may affect the day count in some SRT tests, but this is a cap — a maximum of 60 days per Tax Year — not an allowance to “stay an extra 60 days every year.” Transit Days and other specific situations may also affect the calculation.

The detailed definitions and test logic of each part of the SRT are covered in the related cluster article on how the UK Statutory Residence Test works, the 183-day rule, the Ties Test and an introduction to Split Year treatment.

The concept of Split Year. If you move to the UK partway through a Tax Year, or leave the UK partway through one, your tax year is not necessarily treated under a single status for the whole year. The SRT has an arrangement called Split Year Treatment, which splits certain years into a UK Part and an Overseas Part, applying different rules to the tax consequences of each.

Split Year does not apply automatically — you need to meet one of eight Cases specified by HMRC, and the SRT in principle first confirms your UK Tax Resident status for the whole year before Split Year can be considered. Where more than one Case applies, Priority Ordering rules determine which one is used. Split Year does not mean “resident for half the year, non-resident for the other half,” and it does not mean “that portion of income is tax-free” — it only separates the tax consequences by period.

Step Two: The Tax Consequences Once Your Status Is Determined

The outcome of the SRT determination directly decides the scope of tax you face in the UK. This is step two.

If you are a UK Tax Resident. In general, a UK tax resident must pay UK tax on their Worldwide Income. From 6 April 2025, all UK Tax Residents are, in principle, taxed on worldwide income and gains on an Arising Basis, unless an applicable relief exists (see the FIG Regime section below).

If you are a Non-Resident. Being a Non-Resident does not mean you have no UK tax responsibility. Even if you are not a UK tax resident, if you have UK-Source Income — for example, rental income from a UK property, UK salary, or UK savings interest — you generally still need to report and pay UK tax on that income.

A Non-Resident generally does not need to pay UK tax on overseas income, but if UK assets, UK property or specific UK-Source Gains are involved, there may still be a UK reporting obligation.

The differences in tax treatment between a UK Tax Resident and a Non-Resident across different types of income are covered in the related cluster article on the differences between UK tax residents and non-residents in overseas income, UK-source income and reporting responsibilities.

The FIG Regime: What’s New (Applies to Some UK Tax Residents)

The Foreign Income and Gains Regime (FIG Regime) is a new regime that took effect on 6 April 2025, aimed only at UK Tax Residents who meet specific conditions.

Eligibility conditions. The FIG Regime does not apply automatically. To be eligible, you need to meet all of the following at the same time:

• Determined to be a UK Tax Resident under the SRT
• Had at least 10 consecutive Tax Years as a Non-UK Tax Resident before becoming a UK Tax Resident
• Within the first 4 Tax Years after first becoming a UK Tax Resident
• Actively make a Claim through Self Assessment for each Tax Year

In other words, the FIG Regime is mainly aimed at people who have settled in the UK relatively recently and lived outside the UK for a long time beforehand — for example, someone from Hong Kong or Taiwan who has just moved to the UK and was a non-UK tax resident for at least 10 years beforehand may be eligible, within their first 4 Tax Years after the move, and it is worth evaluating.

The effect and cost of the FIG Regime. In a year where you qualify and actively Claim, part of your overseas income and gains can be exempt (Relief) from UK tax, and remitting the exempted amount into the UK does not trigger additional tax either.

But the FIG Regime carries an important cost: in a year you claim FIG Relief, you cannot also claim the Personal Allowance and the Capital Gains Tax Annual Exempt Amount. This is a choice that must be evaluated independently each year, not a one-off decision.

The time limit on the FIG Regime. The FIG Regime covers a maximum of the first 4 eligible Tax Years. Once that period ends, you generally return to the default arrangement of being taxed on Worldwide Income on an Arising Basis, depending on your circumstances.

The FIG Regime is not a condition of the SRT determination. It must be understood clearly: the FIG Regime is a layer of tax consequence that applies after UK Tax Resident status has been determined; it does not affect the SRT determination process, and it does not let you “choose” your tax residency status through a FIG arrangement.

Transition: The Old Remittance Basis and the New FIG Regime

Before 6 April 2025, the UK had an old arrangement called the Remittance Basis for Non-Domicile individuals, which broadly allowed some people to opt for a system where only overseas income actually remitted into the UK was subject to UK tax.

The Remittance Basis was formally abolished on 6 April 2025. Since then, Domicile is no longer a determining factor for the taxation of overseas income and gains; the new taxation framework is instead based on Tax Residence, with the FIG Regime as the relief arrangement for specific individuals within it.

If you come across material referring to the Remittance Basis as a current option, check the material’s update date and whether it has been revised to reflect the 6 April 2025 changes.

Dual Residence and the DTA Tie-Breaker

In some cases, the same person may be determined a tax resident under both UK law and the local law of another country at the same time, creating Dual Residence.

A Double Taxation Agreement (DTA) generally contains Tie-Breaker Rules used to determine which country’s Tax Resident status governs the allocation of tax in a dual residence situation.

The DTA Tie-Breaker is a Treaty-level question that comes after the SRT determination is complete. It does not replace the SRT, and it is not a mechanism that lets a taxpayer freely choose “which country I want to pay tax in” — in general, the actual outcome depends on the specific terms of the relevant DTA between the two countries.

For readers from Hong Kong or Taiwan, whether a valid DTA exists between the UK and Hong Kong, or between the UK and Taiwan, and how the specific terms operate, is a specific legal question requiring independent verification; you should consult a qualified international tax adviser.

Who This Is For — And Who Should Seek Help

Suitable for reading and gaining a preliminary understanding of this system:

• Readers planning to move to the UK within the next 1–3 years who are currently researching the tax implications
• Readers who have lived in the UK long term but have never systematically understood their own tax residency status
• Readers who still have assets or rental income in Hong Kong or Taiwan, while potentially becoming a UK tax resident
• Readers who want to understand how overseas income should be handled after moving to the UK

Situations that should not be judged alone and need professional help:

• Your number of days in the UK is close to any SRT test threshold
• You have work income, rent, assets or a company arrangement in both the UK and another country at the same time
• You are considering whether to Claim the FIG Regime and need to weigh the gains and costs
• You have a Split Year situation, such as moving to or leaving the UK partway through a Tax Year
• You hold UK property or a UK company while also having overseas income
• You have a trust, an inheritance, or a more complex asset structure

In the situations above, an incorrect determination of tax residency status can lead to under-reported income, back taxes and Penalty risk — you should seek advice from a qualified UK tax adviser early.

Practical Action Points

If you are researching the tax implications of moving to the UK:

1. First understand the basic logic of the SRT: your UK tax residency status is determined by Tax Year, not by your date of entry. The number of days, your family circumstances and your work arrangements can all affect the outcome.
2. Assess whether you meet the basic conditions for FIG Regime eligibility: do you have a record of more than 10 years as a Non-UK Tax Resident? How many years do you plan to live in the UK long term?
3. List your overseas assets and income sources: once you become a UK tax resident, how will the tax treatment of this income change?
4. Confirm your UK-source income, if any: even if you are not a UK tax resident, UK rent, salary and similar UK-Source Income may still need to be reported.

If you already live in the UK long term:

1. Confirm whether you have correctly reported your tax residency status through Self Assessment, including completing the SA109 (residence, remittance basis etc. supplementary pages) where needed.
2. If you think you may meet the FIG Regime conditions, you need to actively make a Claim in each Tax Year — do not wait for the system to handle it automatically.
3. If a Split Year situation applies, confirm which Case you are using and whether it has been correctly reflected in your filing.

If you have a question about your own case, ask Zagdim and tell us your situation — we will help you clarify it. If you need a professional or someone to help in person, let us know that too — the ZDelp service assistant can arrange this for you at any time.

Common Misunderstandings

Misunderstanding One: “If you stay in the UK for 183 days or more you are a tax resident; less than 183 days and you are not.”

Not accurate. 183 days is one of the conditions in the Automatic UK Tests, not the whole of the SRT. Below 183 days, you can still be determined a UK Tax Resident under the Sufficient Ties Test. The actual outcome depends on your number of days in the UK, the number of Ties, and whether you were previously a UK tax resident (the thresholds differ for a Previous Resident and an Arriver).

Misunderstanding Two: “A Non-Resident doesn’t need to worry about UK tax at all.”

Not accurate. Even if you are not a UK tax resident, if you have UK-Source Income (for example, rent from a UK property, or UK salary), you generally still need to report and pay UK tax on it. Being a Non-Resident only means Foreign Income is not subject to UK tax — it does not fully remove your UK tax responsibilities.

Misunderstanding Three: “Having a UK visa means you are a UK tax resident.”

Not accurate. Immigration status (a visa) and tax residency status are two completely separate systems. Holding a BNO visa or another UK visa does not by itself determine your tax residency status; that is decided by the outcome of the SRT.

Misunderstanding Four: “The FIG Regime means overseas income is never taxed in the UK.”

Not accurate. The FIG Regime covers at most the first 4 eligible Tax Years, requires an active Claim each year, and in a year you Claim you lose the Personal Allowance and the CGT Annual Exempt Amount. After 4 years, you generally return to the default arrangement of being taxed on worldwide income on an Arising Basis.

Misunderstanding Five: “The Remittance Basis still applies — if you don’t bring the money into the UK, you don’t pay tax.”

Not accurate. The Remittance Basis was formally abolished on 6 April 2025. Since then, there is no longer a general arrangement of “no tax if you don’t remit it to the UK”; the current system uses the FIG Regime as its relief framework. If you were on the Remittance Basis before this date, confirm the transitional arrangements with a tax adviser.

FAQ

Q1: I live in the UK for a few months a year but not more than 183 days — does that mean I am not a UK tax resident?
Not necessarily. Below 183 days, the SRT can still determine you a UK Tax Resident through the Sufficient Ties Test. This test combines your Ties to the UK (such as family, accommodation and work) with your actual days in the UK, and the threshold differs depending on whether you were previously a UK tax resident (Previous Resident) or are arriving for the first time (Arriver). It is worth setting out your day-count records and Ties situation and assessing them via HMRC’s RDR3 guidance or a tax adviser.

Q2: I’m from Hong Kong and moved to the UK on a BNO visa — does the FIG Regime apply to me?
It may, depending on whether you meet the eligibility conditions, which mainly include: being determined a UK Tax Resident under the SRT, having had at least 10 consecutive Tax Years as a Non-UK Tax Resident before moving to the UK, being within the first 4 Tax Years after first becoming a UK Resident, and actively Claiming each year. Because individual cases vary considerably, you should consult a tax adviser familiar with UK/Hong Kong tax arrangements to assess whether it is worth claiming and what the cost of claiming would be.

Q3: I rent out a flat in the UK but live in Hong Kong myself — do I need to pay UK tax?
In general, yes. Even if you are not a UK tax resident, rental income from a UK property is UK-Source Income and generally needs to be reported and taxed in the UK. You may need to report it via Self Assessment, or through the Non-Resident Landlord Scheme arrangement. Consult a UK tax adviser for your specific situation.

Q4: What is Split Year? I moved to the UK partway through a Tax Year — do I have to pay tax as a UK Tax Resident for the whole year?
Not necessarily. If you meet one of the specified Split Year Cases, your tax year may be split into a UK Part and an Overseas Part, with different rules applied to the tax consequences of each. Split Year does not apply automatically; you need to meet HMRC’s specified conditions and report it through Self Assessment. See the related cluster article for detailed conditions.

Q5: Can a DTA let me choose to pay tax in Hong Kong instead of the UK?
Generally, that is not how it works. The Tie-Breaker Rules in a Double Taxation Agreement (DTA) resolve the allocation of tax in a dual residence situation, but these rules follow fixed criteria — they are not a mechanism a taxpayer can freely choose. The specific tax arrangement between the UK and Hong Kong needs to be separately verified; consult a international tax adviser.

Q6: I moved to the UK in April 2025, having lived in Hong Kong before that — can I use the FIG Regime?
Looking at the eligibility framework, if you were a non-UK tax resident for more than 10 consecutive Tax Years before that and became a UK Tax Resident in the 2025–26 Tax Year, you may technically meet the basic FIG Regime eligibility conditions. But the FIG Regime requires an active Claim each year, and in a year you Claim you lose the Personal Allowance and the CGT Annual Exempt Amount; whether it is worth claiming depends on your specific income structure and overseas asset position. It is best to get a tax adviser’s assessment before the end of your first Tax Year.

Q7: I want to understand my own situation — what should I do first?
Suggested steps: (1) set out your record of days spent in the UK (including recent years) and confirm which years might involve a UK Tax Resident determination; (2) list your sources of income — which are UK-Source Income and which are Foreign Income; (3) assess whether you meet the basic FIG Regime eligibility conditions; (4) consult a qualified tax adviser, especially if your situation is close to any threshold, or involves more than two jurisdictions.

Have a question about an overseas visa, long-term stay or entry status? Ask Zagdim to set out the basics of your situation. Zagdim can do an initial review of your purpose of stay, entry records, income sources and the visa direction that may apply; if needed, ZDelp can also connect you with the right overseas visa and relocation service resources.

Disclaimer

This article’s information is current as of June 2026, based mainly on HMRC’s RDR3 guidance (updated to June 2026), HMRC manuals (RFIG) and the relevant GOV.UK pages. UK tax rules are updated continually; before making any decision, consult a qualified UK tax adviser to confirm the latest rules and their applicability to you. This article is for reference only and does not constitute tax advice.

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