Europe · British Isles

United Kingdom

On 6 April 2025 the UK dismantled the 226-year-old non-dom regime and rebuilt its tax system around residence rather than domicile — turning what was the world's most sophisticated jurisdiction for holding offshore wealth into one where a decade of residence puts your entire worldwide estate in the path of 40% inheritance tax.

Last verified July 2026186 visa-free destinations

Tax position

Income tax (top): 45% additional rate on employment and self-employment income above GBP 125,140 (Scotland: 48%); rates on earned income were explicitly left unchanged at Autumn Budget 2025, but thresholds are frozen to April 2031. Asset income was hit instead: dividend ordinary and upper rates rose 2 points to 10.75% and 35.75% from 6 April 2026 (additional rate held at 39.35%), and from 6 April 2027 savings income tops at 47% and property income moves to its own 22/42/47% scale
Capital gains: 24% for higher and additional rate taxpayers, 18% on gains falling within the basic rate band; annual exempt amount GBP 3,000; Business Asset Disposal Relief rose to 18% from 6 April 2026 (was 14% in 2025/26, 10% before April 2025) on a GBP 1m lifetime limit
Wealth tax: none; but a High Value Council Tax Surcharge on residential property valued above GBP 2m arrives in April 2028, based on 2026 valuations, at roughly GBP 2,500–7,500 a year by band
Inheritance tax: 40% above a GBP 325,000 nil-rate band frozen to April 2031. Residence-based from 6 April 2025: worldwide assets are in scope once you are a long-term UK resident (UK resident in at least 10 of the previous 20 tax years), and a 3-to-10-year tail follows you out of the country
Special regime: 4-year FIG regime: 100% relief on foreign income and gains for the first 4 years of UK residence, available only after at least 10 consecutive tax years of non-residence
Territorial: No — worldwide income taxed
CFC rules: Yes
Exit tax: No
CRS: Participating