COMPLIANCE
‘Non-dom’ changes: what employers and internationally mobile employees need to know
Charlotte Hobrough, director, global employer services, BDO, discusses what’s happening to the non-dom regime and what we’ll see in its place
T he autumn budget finally provided clarity on the abolishment of the ‘domicile’ concept for UK tax purposes from April 2025 and the implementation of new measures relevant for internationally mobile employees (IMEs). Comments provided below are based on information made available on the day of the autumn budget but further
guidance from HM Revenue and Customs (HMRC) will follow.
four UK tax years but will be subject to financial limits per tax year l full eligibility for the FIG regime (four tax years) will be based on non-UK tax residence in the ten UK tax years prior to establishing UK tax residency l IMEs will be able to elect into the FIG regime on a year by year basis, but will lose their personal allowance (PA) and annual exemption (capital gains tax)
What are the highlights? l the foreign income and gains (FIG) regime will allow foreign income and gains to be treated as outside the scope of UK taxation for up to four tax years. Overseas workdays relief (OWR) eligibility will be extended for up to
| Professional in Payroll, Pensions and Reward | February 2025 | Issue 107 16
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