4 years — Duration of the UK FIG exemption for new arrivals
12% — TRF flat rate on designated foreign income/gains remitted in 2025/26–2026/27
| Transfer Type | UK Tax Position | Reporting Required? | Key Risk |
|---|---|---|---|
| Sending money to family abroad (from post-tax income) | Not taxable | No | None for most senders |
| Receiving a gift from non-UK resident | Generally not taxable | No (under £3,000 IHT annual exemption applies) | Gifts from UK-domiciled estates may carry IHT |
| Receiving foreign employment income | Taxable as employment income | Yes — Self Assessment | Employer may not deduct UK PAYE |
| Receiving foreign pension payments | Usually taxable (treaty-dependent) | Yes — Self Assessment | Double tax treaty may reduce or eliminate charge |
| FIG-eligible remittance (years 1–4 of UK residence) | Exempt from UK tax | Election required on Self Assessment | Must meet 10-year non-residence test |
| TRF designated remittance (2025/26–2027/28) | Flat 12–15% rate | Yes — Self Assessment election | Window closes permanently after April 2028 |
| Pre-April 2025 remittance basis income brought to UK after April 2025 | Taxable at full arising basis rates | Yes — Self Assessment | No further remittance basis relief available |
No. The remittance basis was abolished from 6 April 2025. For tax years 2025/26 onwards, it is no longer possible to claim the remittance basis. New arrivals who meet the 10-year non-residence test can instead claim the 4-year Foreign Income and Gains (FIG) exemption, which allows foreign income and gains to be brought to the UK tax-free during the first four UK tax years.
No. Transferring money from a UK bank account to an overseas recipient is not a taxable event in itself. You pay UK tax on income and gains when they arise (or, under historical remittance basis rules, when they were remitted). The act of sending funds internationally does not create a new tax charge, but the source of those funds — employment income, investment returns, etc. — determines whether they were taxed correctly before being sent.
The TRF is a transitional arrangement for former remittance basis users. It allows pre-April 2025 foreign income and gains to be designated and brought to the UK at a flat rate of 12% in 2025/26 and 2026/27, rising to 15% in 2027/28. After 5 April 2028 the TRF closes permanently. It must be claimed via an election on your Self Assessment return in the relevant tax year.
The transfer mechanism does not change your underlying tax liability. What matters is the nature and source of the funds being moved — whether they represent taxable income, capital gains, clean capital, or exempt FIG amounts. However, the transfer method significantly affects cost: bank wires on GBP corridors typically cost 2–4% in fees and FX markup, while stablecoin rails (USDC on Stellar or Tron) cost under 0.5%. The tax treatment is identical regardless of which provider you use.
A mixed fund is an offshore bank or investment account that contains more than one category of funds — for example, a combination of pre-UK-residence savings (clean capital), foreign employment income, and foreign investment gains. HMRC applies a strict ordering rule to mixed funds: when money is remitted from a mixed fund, the highest-taxed category is treated as remitted first. This can create unexpected tax liabilities. Keeping separate accounts for different categories of funds, or seeking a fund cleansing exercise, is important for anyone with complex offshore wealth.
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