If you live in the UK and have income, savings, property, or investments abroad, there have been significant changes to how this is taxed.
From 6 April 2025, the UK moved away from the long-standing non-domicile tax rules and introduced a new residence-based system. This means many people who previously had more flexibility in how their overseas income was taxed may now need to report and pay UK tax on worldwide income and gains.
These changes reflect HMRC’s updated rules on how UK residents with foreign income are taxed.
At Friendly Assist Accountancy, we are already supporting clients through this transition and helping them understand what it means for their personal situation.
What has changed?
The previous “non-dom” system allowed some UK residents to use the remittance basis, meaning foreign income was only taxed if it was brought into the UK.
This system has now largely ended for most taxpayers.
Under the new rules:
• UK tax residents are generally taxed on worldwide income and gains
• the remittance basis no longer applies in most cases
• some recent arrivals may qualify for a time-limited relief period
• offshore structures such as trusts and overseas companies may now fall within UK tax scope
These changes are already in effect for the 2025–26 tax year.
Who is affected?
These changes may apply if you have:
• overseas rental income
• foreign investments or dividends
• interest from overseas savings accounts
• offshore business interests or trusts
• property or assets held outside the UK
Even if the money is not transferred to the UK, it may still need to be reported.
Why this matters now
We are currently in a transition period where many people are preparing their first tax returns under the new system.
This makes accurate reporting especially important, as HMRC will expect clearer disclosure of overseas income than under the previous regime.
Key deadlines to be aware of
31 October 2025
Deadline for paper self-assessment tax returns for the 2024–25 tax year
31 January 2026
Deadline for online tax returns and payment of any tax owed for 2024–25
If you have overseas income, it is especially important to ensure your records are complete before filing, particularly if this is your first year affected by the new rules.
What you can do now
Even though the changes are already in place, there is still time to prepare and make your tax position clearer.
This may include:
• reviewing how your overseas income is structured
• checking what needs to be reported in the UK
• making sure records are complete and consistent
• understanding whether any reliefs still apply
• planning ahead for future tax years under the new system
A simple example
If you own a rental property overseas, you may now need to declare that income in your UK tax return, even if you keep the rental profits in a foreign bank account and do not bring them into the UK.
This is one of the key differences under the new system.
How Friendly Assist Accountancy can help
We support clients with international income and cross-border tax issues by helping them:
• understand how the new rules apply to their situation
• prepare accurate UK tax returns
• review overseas income and investments
• stay compliant with HMRC reporting requirements
• plan ahead to reduce unnecessary tax exposure where possible
If you are unsure how the changes affect you, it is worth getting advice early, especially before filing deadlines approach.
Why professional advice matters
These are some of the most significant changes to UK tax rules for international income in many years.
For many people, the rules are not difficult in principle, but they are detailed and easy to misunderstand in practice.
Getting clarity early can help avoid mistakes, stress, and unexpected tax bills.
If you would like support, Friendly Assist Accountancy is here to help you understand your position and move forward with confidence.
Contact us to discuss how the new rules affect you and how we can help you optimize your tax position.
Useful resources
• HMRC guidance on changes to the taxation of non-UK domiciled individuals
• HM Treasury technical note on reforming non-UK domiciled taxation rules
Get in touch for a friendly chat about how we can support you.
Friendly Assist Accountancy
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