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The prize is significant: 4 years of 0% tax on your foreign income and gains. Under the new FIG Regime (Foreign Income and Gains), introduced on 6 April 2025, new arrivals to the UK can shield their offshore wealth from the Treasury completely. But access to this regime hangs on a single, strict criterion. You must pass the 10 Year Non Residence Test.
While the concept sounds simple have you lived outside the UK for 10 years? the technical reality is full of traps. A single day of residency nine years ago, or a misunderstood Split Year, can disqualify you entirely.
This guide explains the technical eligibility rules (HMRC code RFIG44000) and the common pitfalls that catch global citizens out.
The Golden Rule Defined
To qualify for the 4-year FIG exemption, the law is binary. There is no grey area. You must have been non-UK tax resident for at least 10 consecutive tax years immediately prior to the tax year of your arrival.
This is a retrospective test. To pass it, you must look back at your filing history for the full decade.
Example:
If you become a UK resident in the 2025/26 tax year, you must have been non-resident for every single tax year from 2015/16 through to 2024/25.
- If you were non-resident for 9 years and resident for 1 year? You Fail.
- If you were resident 11 years ago? You Pass.
The Split Year Trap Crucial Warning
This is the most common reason we see clients unexpectedly disqualified.
When you leave the UK, you often claim Split Year Treatment. This allows you to stop paying UK tax from the day you board the plane, rather than waiting for the end of the tax year.
However, technically a Split Year is still a year of UK Residence.
The Scenario:
- You left the UK in August 2016 (during the 2016/17 tax year).
- You claimed Split Year treatment, so you paid no tax on foreign income after August.
- You return to the UK in April 2025.
The Result: You might think you have been away for nearly 9 years. But the tax year 2016/17 counts as a year of Residence. Your “clock” for non-residence didn’t start until 6 April 2017.
- Result: You have only 8 years of non-residence.
- Verdict: You are ineligible for the FIG regime. You will pay worldwide tax from Day 1.
Statutory Residence Test (SRT): The Only Yardstick
How do you prove you were non-resident? It isn’t about where your house is; it is about the Statutory Residence Test (SRT).
For years post-2013, the SRT is the only measure. It combines your day count with your “ties” to the UK (family, accommodation, work).
The Tie-Breaker Risk:
You might have spent only 95 days in the UK in a specific year and assumed you were non-resident. However, if you had a home available and family here, the SRT might classify you as Resident for that year.
- If just one year in the last 10 is reclassified as Resident upon review, your FIG eligibility vanishes.
Note: For tax years prior to 2013/14, the older common law residence rules apply, primarily focusing on day counts and intentions.
Confusion Buster: 10 Years AWAY vs. 10 Years HERE
The 2025 tax changes introduced two major 10-year rules. It is vital not to confuse them, as they work in opposite directions.
| Feature | 10-Year Non-Residence Test | 10-Year Residence Rule |
|---|---|---|
| Topic | Income Tax (FIG Regime) | Inheritance Tax (IHT) |
| Direction | 10 Years AWAY from UK | 10 Years IN the UK |
| Outcome | GOOD: You qualify for 4 years tax-free. |
BAD: Your worldwide estate is liable for IHT. |
| Goal | You want to PASS this test. | You want to AVOID this threshold. |
Case Studies: Do They Qualify?
Scenario A: The Gap Decade
- Profile: Sarah left the UK in 2014. She visited her parents for 3 weeks every summer 21 days/year. She returns in May 2025.
- Verdict: PASS. Her visits were minimal. She has 11 full tax years of non-residence. She qualifies for the FIG regime.
Scenario B: The Frequent Flyer
- Profile: David moved to Dubai 10 years ago. However, in 2018/19, he spent 110 days in the UK working on a project and stayed in his retained London flat.
- Verdict: FAIL (Likely). Under the SRT, 110 days + accommodation tie + work tie likely made him UK Resident for 2018/19. That single year breaks his 10-year chain. He gets zero years of exemption.
Frequently Asked Questions
This is complex. If you were technically UK resident under domestic law, but claimed Treaty Non Residence (because you lived in another country with a double tax treaty), this generally does count as a year of non-residence for FIG eligibility. However, this requires a forensic review of your tax returns.
Yes. If you were here for university and spent more than 183 days a year in the UK, you were tax resident. This will block you from the FIG regime until you have left and stayed away for a full 10 years.
No. The test is statutory and mechanical. There is no leniency for almost qualifying.
Conclusion
Don’t Guess Your History
The difference between passing and failing this test is often hundreds of thousands of pounds in tax. Do not rely on your memory of where you were in 2016.
You need a Residency History Review.
At IBISS & CO, we analyse your historic day counts, ties and tax returns against the Statutory Residence Test to confirm your status before you file.
Unsure if a Split Year or frequent visits have broken your 10-year chain?
Contact our Tax Team today to verify your eligibility for the FIG regime.
