The UK’s New Residence-Based Tax Regime

Statutory Residence Test

• Automatic overseas residence

• Automatic UK residence

• ‘Sufficient ties’ tests

• Split-year treatment (overview)

Taxation of Non-Residents

• Availability of allowances

• Disregarded income calculations

• Non-resident landlord scheme (overview)

• Chargeability to CGT

• Temporary non-residence anti-avoidance, including:

• Finance Act 2026 change

• Case studies

Taxation of UK residents

• Overview

• Qualifying new residents

• Definition

• Foreign income claims

• Foreign employment income elections

• Foreign gains claims

• Why is it not always beneficial to make these claims?

Situs (location) of assets

Transitional Provisions for Non-Doms who Previously Claimed Remittance Basis (Overview)

• Temporary repatriation facility (TRF)

• Rebasing of assets for CGT purposes

The New Residence-Based IHT Regime

• Definition of long-term resident (LTR), whose worldwide assets, rather than just UK assets, come within the scope of IHT

• LTRs becoming non-resident The ‘tail’ provisions

Replacement of spousal domicile elections with spousal LTR elections

DTR, tax treaties and related issues (overview)

SA 106 and SA 109 forms

Training Objectives

• Explain how someone’s residence status is determined

• Discuss the anti-avoidance rules affecting temporary non-residents

• Explain the main UK tax implications of being non-resident (NR).

• Demonstrate the tax savings for NRs available from disregarded income calculations

• Explain the special claims and elections that are available to ’qualifying new residents’

• Review the main transitional rules for those previously non-domiciled individuals

• Explain the key facets of the UK’s residence-based IHT regime

• Ensure that non-specialists understand the key issues for individuals resulting from the reforms in the Finance Act 2025

Training Course Summary

Finance Act 2025 fundamentally changed the tax regime in the UK. The previous advantages of non-domiciled status for income tax, CGT and IHT were removed, with chargeability to all three taxes being based solely on a taxpayer’s residence status from 6 April 2025.

This course will assume no prior knowledge of the topic. After explaining how an individual’s UK residence status is established, we will discuss how the new regime applies, in particular the claims and elections available to ‘qualifying new residents’. We will also cover the key transitional rules for those who were previously non-domiciled in the UK.

Note that only UK tax rules will be discussed, not the tax law in other jurisdictions.