Moving to the UK: what's taxed
New to the UK after 10 years away? You may pay no UK tax on foreign income and gains for 4 years, but a claim costs you the tax-free allowance. See if it's worth it.
Your answer
Tell us when you arrive and your foreign income.
About this calculator
For people moving to the UK, or coming back after 10 years or more away, who want to know what the UK will tax and whether to claim relief on their foreign income and gains.
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How it’s worked out
From 6 April 2025 the 4-year regime (foreign income and gains regime) replaced the remittance basis. If you weren't UK resident in the 10 tax years before you arrive, you can claim relief from UK tax on foreign income and gains for your first 4 tax years here, in a row. Claims start from 2025/26, so if you arrived earlier you get the years that are left. You claim on your tax return, by 31 January a year after the normal filing date.
A claim for any year costs you that year's tax-free allowance (personal allowance) and the £3,000 tax-free amount for gains. We compare one year at 2026/27 rates for England, Wales and Northern Ireland: all your income taxed with the allowance, against your UK income taxed without it. We tax foreign income at the main rates and ignore any tax you've paid abroad, which could make not claiming cheaper.
Worked example
You qualify for the 2026/27 to 2029/30 tax years. Claiming for a year like 2026/27 could save about £2,972: £8,000 less tax on your foreign income and gains, less £5,028 for the tax-free allowance you lose.
Never UK resident · arriving 2026/27 · 2026/27 rates · England, Wales or NI
| UK resident before | Never |
|---|---|
| You qualify (10 years or more, or never resident) | Yes |
| First tax year UK resident | 2026/27 |
| Tax years you can claim (4 in a row from arrival, claims from 2025/26) | 2026/27 to 2029/30 |
| UK income a year | £60,000 |
| Foreign income a year | £20,000 |
| Foreign gains a year | £0 |
| Not claiming: tax-free allowance | £12,570 |
| Not claiming: income tax on UK and foreign income | £19,432 |
| Not claiming: Capital Gains Tax on foreign gains over £3,000 | £0 |
| Tax for the year if you don't claim | £19,432 |
| Claiming: tax-free allowance and gains allowance lost | £0 |
| Claiming: income tax on UK income only | £16,460 |
| Claiming: tax on foreign income and gains | £0 |
| Tax for the year if you claim | £16,460 |
| Tax saved on foreign income and gains | £8,000 |
| Extra tax from losing the tax-free allowance | £5,028 |
| Claiming saves | £2,972 |
Based on HMRC's guidance on the 4-year foreign income and gains regime and Overseas Workday Relief, 2026/27 rates.
Questions people ask
What about pay for work I do outside the UK?
That isn't covered by the 4-year regime, but Overseas Workday Relief can take pay for days worked abroad out of UK tax for the same 4 years, up to the lower of 30% of that pay or £300,000 a year. You elect for it on your tax return, and it also costs that year's tax-free allowance.
Do I have to claim on all my foreign income?
No. You choose which sources to claim on, year by year. But a claim on any source costs the whole tax-free allowance for that year, so a small claim can cost more than it saves.
Does moving here affect inheritance tax?
Yes, in time. Once you've been UK resident for 10 of the last 20 tax years you're a long-term UK resident, and your worldwide assets come into UK inheritance tax. If you came back after 10 years away, only the years from your return count.
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