UK non-dom status ended on 6 April 2025. From that date the remittance basis closed and domicile stopped deciding UK tax. Residence replaced it: a four-year relief on foreign income and gains for arrivals after ten years abroad, and inheritance tax on overseas assets once you have been UK resident for 10 of the previous 20 tax years.
What did non-dom status mean
Non-dom status described a UK resident whose domicile, the common law idea of a permanent home, lay outside the UK. Such a person could claim the remittance basis and pay UK tax on foreign income and gains only when the money came into the UK. Domicile also decided whether inheritance tax reached their overseas assets.
What ended on 6 April 2025
The remittance basis and domicile as a connecting factor both ended that day, under the Finance Act 2025. HMRC's manual, updated 7 April 2026, states that from 6 April 2025 the remittance basis can no longer be used and domicile is replaced by a system based on tax residence.
Inheritance tax moved the same day: IHTM47001 records that it moved from domicile to long-term UK residence. Both changes are enacted and in force.
What replaced it for income tax and capital gains
Two reliefs replaced the remittance basis, and both depend on arriving after a long absence. GOV.UK guidance states that the 4-year foreign income and gains regime replaced it on 6 April 2025. It covers your first 4 years of UK residence after at least 10 years as a non-resident, and unused years cannot be rolled over.
Employees can add overseas workday relief on earnings for work done abroad, capped by HMRC at the lower of 30 percent of qualifying employment income or £300,000 a year, for up to 4 tax years. Each FIG claim costs that year's income tax and capital gains tax allowances. More in our note on the UK foreign income and gains regime.
Domicile plays no part in either test. Current UK rates and bands are in the United Kingdom country guide.
How inheritance tax works without domicile
You are a long-term UK resident in a tax year if you were UK resident for at least 10 of the previous 20, under section 6A of the Inheritance Tax Act 1984. GOV.UK guidance states that inheritance tax is charged on overseas assets you owned outright, on a transfer or on death, while you are a long-term UK resident.
The status ends after a run of non-residence set by section 6A, from the resident years in the 20 tax years ending with your last year of UK residence:
- 13 or fewer resident years · 3 consecutive non-resident tax years
- 14 resident years · 4 tax years
- 15 resident years · 5 tax years
- 16 to 19 resident years · 6 to 9 tax years, one more for each extra resident year
- 20 resident years · 10 tax years
Ten consecutive non-resident years within the previous 19 also end the status. GOV.UK states that someone who returns after 10 consecutive years of non-residence starts the 10 out of 20 count again.
How the inheritance tax tail works in practice
As an illustration, take a person UK resident for 16 tax years, from 2010-11 to 2025-26, who is non-resident from 2026-27 onwards.
- Resident years in the 20 ending 2025-26 · 16
- Required run of non-resident years under section 6A · 6
- Non-resident years needed · 2026-27 to 2031-32
- First tax year outside the regime · 2032-33, from 6 April 2032
IHTM47021 adds a transitional rule: an individual who was not domiciled or deemed domiciled in the UK on 30 October 2024 and becomes non-resident in 2025-26 is not a long-term UK resident.
Can you be domiciled but not resident
Yes. Domicile and residence are separate tests. HMRC's manual at RDRM22100 states that the common law ascribes a domicile of origin to every individual at birth, and that under UK law it is never lost other than by adoption. Residence is decided each tax year by the statutory residence test.
Since April 2025 domicile has a narrow role. IHTM47001 lists where it still applies: transfers and deaths before 6 April 2025, certain settled property, and designated double taxation conventions that use the common law concept of domicile. For how residence itself is counted, see tax residency tracking.
What happens to money from the remittance basis years
Former remittance basis users can designate foreign income and gains from before 6 April 2025 under the Temporary Repatriation Facility. RDRM71000 fixes its life at 3 tax years, 2025-26 to 2027-28, and Schedule 10 to the Finance Act 2025 sets the charge: 12 percent in a 2025-26 or 2026-27 return, 15 percent in a 2027-28 return. Deadlines are in our note on the Temporary Repatriation Facility.
Heed's reading: since April 2025, the count of UK resident tax years decides both the four-year relief and inheritance tax exposure, and for a leaver it fixes when overseas assets leave the charge.
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