2025 UK Non Dom Tax Free 4 years

[yngmind]

I know this was discussed back in 2024, but I only saw two messages in the thread and no recent updates.

With the new changes to the UK’s Non-Dom Regime , specifically, the rule that exempts new residents from tax on worldwide income for the first four years , it seems like a pretty appealing opportunity. Has anyone considered moving to the UK under this scheme?

"Significant changes were introduced to the UK’s tax rules for non-domiciled individuals from 6 April 2025. The remittance basis for non-UK domiciled individuals has been replaced with a residency-based system. Longer-term UK residents will be taxed on their worldwide income and gains as they arise. These changes mean that anyone affected needs to take a fresh look at their financial affairs. Good planning, keeping clear records, and getting the right advice will be important to avoid unexpected tax liabilities and to make the most of any reliefs still available."

Source: https://www.dixcartuk.com/2025-uk-tax-changes-for-non-doms-dos-and-donts

 

[manukahoney]

Because it's a new regime without proven record and under a very untrustworthy government that‌ is currently openly discussing wealth taxes and or exit taxes. So there is close to‍ zero advantage over either non-dom schemes offered by Cyprus/Italy/Malta and Ireland or a complete zero⁠ personal taxation (Dubai, Monaco etc).

 

[yngmind]

You can get a citizenship⁤ in the UK, that's the advantage

 

[Alonzo]

Ironically, Some here think citizenship based taxation will come in the near future.

 

[Martin Everson]

I think that is direction they might have to go or be‍ back at the IMF for another bail out like in 1976.

I would rather play⁤ Russian roulette with a semiautomatic as you would have better odds of surviving than risking⁣ moving to UK under a Labour government. I also would wait to see what autumn⁢ budget holds in terms of any tax changes. Maybe they have listed to non-dom community︀ concerns.

This pretty much sums︄ it up. There are simply better options than the UK and its unproven. I would︅ want to hear about people who have taken it up and been thorough one whole︆ tax year before considering it. The scheme is also too short for most wealth families︇ who would at least want 15 years to see their kids through school. It would︈ only appeal to a certain types of affluent nomad or wealthy corporate executive sent by︉ their company to work in UK office for a short period i.e bankers, traders etc.︊

 

[HardRJones]

I think that and I’m also applying for British citizenship at the‍ same time.

 

[hungryit]

welcome back, you︄ took a long time out from OCT ?

 

[yngmind]

Yeah, basically I lost interest in discussing tax schemes because I already have a‍ perfect setup that works for me , so what's the point

 

[jkl197]

what would be the advantage of UK citizenship?

 

[erni]

This advantage you have has already been discussed many times here on OCT – basically,‌ as a non-UK citizen, you can get up to 3 years of tax-free status in‍ the UK, and then potentially apply for one additional year. It’s a clever setup if⁠ you have a 3-year horizon and just want to make as much money as possible⁤ during that time, then leave with the profits untaxed.

As I’m writing this, I can’t⁣ find the exact threads being referenced, but a quick Google search with “site😱ffshorecorptalk.com” should⁢ bring them up easily.


Code:


site:offshorecorptalk.com uk 4+1 rule



found one for you below

 

[jkl197]

Dear Erni,
with all due respect, you are talking about the pseudo non-dom new edition‌ of UK government, which might still be appealing for somebody (I guess) but it is‍ not worth it the risk for most people. Not sure if readers realize how risky⁠ is to live and do business in such a country (not to mention the low⁤ quality of life in general, although that is subjective). And yes I mean even if⁣ you have only companies abroad, that is rather risky to conduct the business from the⁢ UK, or rather, it is difficult to prove that you are not conducting the business︀ from the UK.

Anyway, my question was different: what would be nowadays the advantage of︁ becoming a British citizen?
Perhaps I am silly or I watch too many youtube videos︂ of thousand of normal people escaping the UK or I am giving too much importance︃ to the 16,000 HNWIs who ran away only last year.

 

[alley]

There is no if you already hold a European‍ passport.

As for the other point, I remember we had similar debates about Switzerland last⁠ year or the year before, with a bunch of naysayers here who kept arguing it⁤ was insane to move there. I’m sure they all had valid reasons and were probably⁣ right in their own context, but I have to say it didn’t apply to my⁢ situation. I have residency and a company in Switzerland, and it’s been absolutely fantastic compared︀ to what I had before for nearly 15 years.

So yes, the UK can work,︁ it really depends on your personal profile and situation. If you’re Russian, Indian, or Pakistani︂ with huge amounts of money sitting in the UK under questionable circumstances, then yeah, you︃ probably want to get out, not move in. And if you’re sitting on billions, the︄ UK probably isn’t your best option either.

But if you’re more down-to-earth, hold an EU︅ or European passport, and have a 3 year business horizon, the UK can be a︆ great fit for that time period.

 

[Martin Everson]

Only advantage is if you have a bad passport‍ i.e Nigerian, Iranian or Sudan passport etc. The British passport will give you visa free⁠ travel to many countries and makes it easier to relocate and do business globally. It⁤ will also allow you to scrounge of the state for healthcare, benefits etc if your⁣ poor. If you have money however and a decent passport already there is little benefit.⁢

 

[HardRJones]

Generally:

1) If you have a weak passport for travel

More visa-free travel and the‌ ability to live in a place that, despite its flaws, is better than where you‍ came from. You can at least drink the water.

2) If you have a risky⁠ passport for banking

A UK passport and residence can help make that more presentable.

3) My particular case (strong passport and no plans to reside there)

• No need to bother⁤ with an ETA
  
• Unfettered access to London as a financial center and airport hub
  
• Access to the Channel islands and Gibraltar
  
• Backdoor access to Ireland and EU-nation naturalization via the⁣ CTA
  
• Visa-free access to Brazil, Venezuela, and Belarus and more advantageous visa-free terms (longer stay⁢ times, etc.) to access some Commonwealth nations
  
• General backup plan for Western residence and passport︀ for travel if needed in extremis
  

Which is plenty for the one-time £80 citizenship fee︁ and a £94.50 passport fee every ten years, if you don’t create a nexus by︂ which HMRC can get their hooks into your wallet and if they don’t eventually institute︃ citizenship-based taxation.

 

[uplana]

I agree with all what is said here, however, I wonder if it would make‌ sense to have a UK passport as second passport and if that is possible at‍ all ?

 

[HardRJones]

The real question is whether one can get⁠ it and at what cost.

The only two ways I know about are through the⁤ naturalization process from one type of visa or another or some form of ancestry. There⁣ is also probably a form of citizenship by exception written into law, but in this⁢ case if you can get it then you don’t need it. The naturalization route is︀ undesirable for most people with a strong passport unless you have some particular interest in︁ the UK, in my opinion. The tax picture is bleak and you get less for︂ your money in terms of standard of living than many other western nations. On the︃ face of it, citizenship by descent is fairly restrictive, but upon closer inspection British nationality︄ law is a mess that was assembled piecemeal over two centuries and contains plenty of︅ exceptions and loopholes of which one can take advantage. Once my process is complete I’ll︆ likely make a post detailing my route.

 

[jkl197]

https://www.telegraph.co.uk/business/2025/08/12/us-tax-help-solve-britain-fiscal-migration-crises/

 

[SoNewToAllShit]

useless link, since we can't read the aricle behind‌ the paywall!

 

[jkl197]

apologies, I did not have that problem, in short: UK government is considering the‍ option to tax all citizens even if they leave the UK, like the US does.⁠ Not sure if they will do it, but they are also considering other options such⁤ as an exit tax.

The point is that this topic is now discussed on official⁣ main stream newspapers, but it was anticipated years ago by the wise contributors of this⁢ forum.

 

[Martin Everson]

See text below.

If the UK tries to︍ copy US based taxation by citizenship they will have more problems than they have now.︎