The UK’s new tax regime for internationally connected individuals and their structures (as of 25 June 2025)ContentsSummary ............................................................................................................................ 2Summary of changes for individuals ........................................................................................... 2Summary of changes for trusts ................................................................................................... 2Settlors ................................................................................................................................................................ 2The trust itself ..................................................................................................................................................... 2Beneficiaries ....................................................................................................................................................... 3Timing ................................................................................................................................. 3The new rules for individuals ........................................................................................... 3The “4-year FIG regime” ............................................................................................................... 3A high-level comparison of the old remittance basis and the current 4-year FIG regime .................................. 3Criteria ................................................................................................................................................................ 4Three types of claim under the new regime ....................................................................................................... 4The drawbacks of using the 4-year FIG regime ................................................................................................. 5How to make a claim for the 4-year FIG regime ................................................................................................. 5Effect of the 4-year FIG regime .......................................................................................................................... 5Comment ............................................................................................................................................................ 6Rebasing relief .............................................................................................................................. 6The Temporary Repatriation Facility (the “TRF”) ....................................................................... 6Overview of the TRF ........................................................................................................................................... 6The “Personal TRF” in more detail ..................................................................................................................... 7The “Personal TRF”, mixed funds and TRF Capital Accounts ........................................................................... 8The “Trust TRF” in more detail ........................................................................................................................... 9Changes to the remittance basis in relation to pre-6 April 2025 foreign income and gains .... 9Inheritance tax (“IHT”)................................................................................................................ 10Comparing the old and new regimes ................................................................................................................ 10The concept of “Long-Term Resident” .............................................................................................................. 10A different rule for those aged 20 and under .................................................................................................... 13Transitional rules for some non-doms .............................................................................................................. 13The impact on gifting ........................................................................................................................................ 14The spouse exemption ..................................................................................................................................... 14Double tax treaties ............................................................................................................................................ 14
The UK’s new tax regime for internationally connected individuals and their structures (as of 25 June 2025)The changes for trusts .................................................................................................... 15Income tax and capital gains tax in relation to trusts .............................................................. 15The previous position ........................................................................................................................................ 15The changes for settlors ................................................................................................................................... 15The changes for the trustee and any underlying non-UK resident companies ................................................ 16The changes for beneficiaries .......................................................................................................................... 16Comment .......................................................................................................................................................... 16Inheritance tax in relation to trusts ............................................................................................ 16The previous position ........................................................................................................................................ 16The changes ..................................................................................................................................................... 16The impact for trusts already in existence as of 30 October 2024 ................................................................... 17The impact for trusts established or funded on or after 30 October 2024 ........................................................ 18Trusts with UK domiciled but non-UK resident settlors .................................................................................... 18Trusts with deceased settlors ........................................................................................................................... 18Qualifying Interest In Possession Trusts (a sub-category of life-interest trusts) .............................................. 18Domicile remains relevant .............................................................................................. 19Other relevant tax changes ............................................................................................. 19How we can help: ............................................................................................................. 19
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