What you need to know about the UK’s New Residency Tax Rule

Jun 23, 2025

The problem. As of April 2025, UK residents have been taxed on worldwide income and gains, whether or not funds enter the UK. While many Britons thought they’d left UK inheritance tax (IHT) behind, their exposure can now last 10 years.

The changes. Here’s what the new system means in practice:

  • Residency not domicile now determines tax and IHT.
  • Remittance-basis has ended with global income taxed annually.
  • FIG regime gives returnees (after 10+ years abroad) 4 years’ exemption on foreign income.
  • Living in the UK for 10 of the past 20 years triggers 10 years of IHT exposure after leaving.

Check your status. This table will help to clarify your position:

France-UK dual exposure. Many DTB Wealth Management clients lived in the UK for decades, moved to France post-Brexit (ie, 2021) and won’t return. They are non-resident for UK income tax but remain exposed to UK IHT until at least 2031.

Takeaway. With smart planning and using tools like assurance vie, non-UK situs assets and proper French declarations it’s possible to reduce the impact. 

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