If you live in the UK and have savings, property, or investments abroad, the way your foreign income and gains are taxed has changed dramatically this year. From 6 April 2025, the government’s long-awaited reforms to the non-domiciled (non-dom) tax regime officially came into force — and they’re already having a major impact.
At Friendly Assist Accountancy, we are working with many clients who are now facing new tax obligations on their overseas income. If you haven’t reviewed your situation since the changes took effect, now is the time to act.
The Non-Dom Regime Has Been Replaced
For decades, individuals who were UK residents but considered “domiciled” elsewhere could use the remittance basis, paying UK tax only on foreign income or gains they brought into the UK.
That system ended on 6 April 2025. In its place, the UK now uses a residence-based system, meaning that most UK residents are taxed on their worldwide income and gains, regardless of whether that money is remitted to the UK.
Key points of the new rules:
- The remittance basis no longer applies for most non-doms.
- Foreign income and capital gains are now generally taxable in the UK if you are tax resident.
- A new, simplified regime exists for recent arrivals — those who have been UK residents for fewer than four years — which may offer more favourable treatment.
- Offshore trusts, foreign companies, and complex structures are under greater scrutiny and often subject to UK tax where they weren’t before.
How This Affects People With Overseas Income
If you earn income from property abroad, hold investments in overseas companies, or have savings in foreign accounts, you may now be liable for UK tax on those earnings — even if you never transfer the money here.
Some common examples include:
- Rental income from overseas property portfolios
- Dividends, interest, or capital gains from foreign investments
- Profits from overseas companies or trusts
- Assets held in offshore bank accounts
The financial impact can be significant, especially for individuals who previously relied on the old non-dom rules to manage their UK tax exposure.
Key Deadlines: Paper Filing Is Approaching
Because the 2024–25 tax year ended just before the new rules began, many people will be dealing with a complex transition period on their tax returns this year. It’s essential to stay on top of your reporting responsibilities.
Important upcoming deadlines:
- 31 October 2025 – Paper tax return deadline for the 2024–25 tax year. HMRC must receive your return by this date if you are submitting a paper version.
- 31 January 2026 – Deadline for online self-assessment filing and payment of any tax owed for 2024–25.
If you have foreign income to report — or if this is your first year affected by the new non-dom rules — it’s especially important to file accurately and on time. Mistakes or missed deadlines can lead to penalties and interest.
What You Can Still Do Now
Even though the changes are already in force, there is still time to make your tax affairs more efficient. At Friendly Assist Accountancy, we’re helping clients:
- Review how the new rules affect their income and investments.
- Restructure overseas holdings to reduce unnecessary UK tax.
- Make use of any available reliefs or allowances.
- Ensure they remain compliant with new reporting requirements.
Why Professional Advice Matters
These reforms are the most significant shift in UK tax policy for people with foreign income in decades. The rules are detailed and complex, and getting things wrong could be costly. Specialist advice is the best way to stay compliant and make the most of your position under the new system.
At Friendly Assist Accountancy, we specialise in international tax planning and cross-border wealth management. Whether you have offshore investments, foreign property, or complex trust arrangements, we can guide you through the new rules and help you plan confidently for the future.
Take Action Before Filing Deadlines Arrive
The non-dom tax changes are now a reality — but there’s still time to make sure you’re managing them effectively. With the paper tax return deadline on 31 October fast approaching, now is the time to review your position and get advice.
Contact Steffen today to discuss how the new rules affect you and how we can help you optimise your tax position.