UK Tax Planning Key Dates

From 2025 UK tax planning shifted from UK non-domiciled status to residence-based Uk tax rules.

Non-dom is an abbreviation for an individual who is not domiciled in the UK. These individuals are usually from the overseas with no significant connections to the UK.

For a long-time, individuals who were born in the UK to non-dom parents were able to claim exemption from UK inheritance tax based on their non-dom status. All they had to do was to point to their non UK domiciled status.

Several generations of overseas persons born in the UK were able to successfully point to their overseas domicile to avoid UK taxation. This is no longer the case and it is no longer possible to do so.

As UK tax rules are now residence-based, some of the preferential treatment remains under 4-year foreign income and gains (FIG) rules.

UK Tax Planning Timeline

UK tax rules start applying at different intervals depending on the length of your residence in the UK. UK tax residence is assessed in accordance with the UK Statutory Residence Test.

Before 2025 UK tax rules changes, there was a sufficient timeline for  different UK tax types.

The first 3 years - Ability to claim Overseas workday relief

During the first three years in the UK, overseas individuals are able to protect their overseas income from being taxed in the UK as long as this income is not brought into the UK and enjoyed in the UK.

This is a very useful tool for individuals who are relocating from overseas to the UK and they still retain job contracts overseas while they start their work duties in the UK.

This offers a three year transition from overseas to the UK. It is referred to as the overseas workday relief. 

In order to successfully claim this exemption, one has to plan their UK tax exposure in advance. It is useful to have separate contracts for work duties performed overseas and in the UK.

You are under the legal duty to complete your self assessment if you are looking to claim this relief.

Overseas Workday Relief remains  a valuabe UK tax planning tool for employees and employers alike.

You can only benefit from this rule only if you are also eligible for 4-year foreign income and gains (FIG) treatment.

The FIG

During the first 4 years as you relocate to the UK, you are able to protect your overseas income and gains from being taxed in the UK, if you:

• Do not bring this income or capital gains to the UK and / or you do not enjoy it in the UK. The enjoyment of income usually relates to buying valuables overseas with such income and bringing it to the UK in a shape of tangible assets and/ or valuables;
• Are able to limit your income gained in the UK to only be taxed in the UK.
• Observe the mixed funds rule.  You risk incurring higher rates of tax if your bank accounts contain mixed funds. For example, you do not seprate your capital from taxed or non taxed or capital gains.

This exemption is only available for the initial four years of UK tax residence.

Previously, under the remittance basis of taxation rules, it was possible to claim the preferential equivalent FIG treatment for the first seven years. This is now reduced to the initial four.

The remittance basis charge is no longer in place.

You are expected regular UK tax rates after the initial 4 years of legal UK tax residence in the UK

UK Inheritance Tax is Now Based on 10 Years of UK Tax Residence

Previously, under non-dom UK tax rules, deemed domicile under for UK Inheritance tax purposes emerged after continuous residence in the UK for 15 out of 20 years.

Now you are subject to UK Inheritance tax after completing 10 years of tax residence in the UK.

UK Tax Year and Compliance

In the UK, the tax year starts every year from the 6th April and ends on the 5th April the subsequent year.

You have until the end of October to submit your UK tax returns if you are submitting them manually in the post.

To submit your UK tax returns electronically you have until 31 st of January.

For instance, for tax year 2025 - 2026, your submission deadline is 31 January 2027.

The HMRC gives you about 9 months to make your submissions for the previous tax year and it is important not to leave it for the last minute and observe the deadline. 

Relocating to the UK Next Steps

It is important to have the appropriate UK tax planning in place before you choose to relocate to the UK for any length of time.

There are useful legal structures that can be utilised in order to protect overseas assets from UK taxation.

Therefore, you should be setting up an appointment with a qualified UK tax adviser who has expertise in working with overseas individuals without any delay.

Consult the Expert

You are considering relocating to the UK and you want to protect your worldwide wealth from excessive taxation as you take on residence in the UK. 

Book a call with me to discuss your Global Wealth Strategy and necessary onshore and offshore legal arrangements to protect your global wealth.

You may submit your enquiry here.

Saule Voluckyte, M.A.E.S, LL.B, FAIA

I have been working exclusively with UHNWI in Mayfair, London since January 2008. I built specialist knowledge and expertise required to serve ultra high net worth individuals investing, operating and relocating to the UK or Switzerland.

Within the industry, I am the single adviser who is able to traverse the different areas of expertise and bring a comprehensive approach across: global structuring, UK immigration, international taxation and FOREX to develop their global wealth strategy, while they build, grow and expand their wealth worldwide.

Previous experience as one of the senior advisors for the government, made me a go-to person when delicate and uncomfortable scenarios involving heads of state need to be handled with care and preserve privacy.