FIG Regime: Which Foreign Income and Gains Do You Actually Have to Report?

The FIG regime can make your foreign income tax free in the UK for four years, but only if you tell HMRC about it. "Tax free" and "no need to report" are not the same thing, and confusing the two is what turns a straightforward return into an enquiry.

The reporting rule in one line

To claim FIG relief you must quantify and disclose the foreign income and gains you are claiming relief on, on the foreign pages of your Self Assessment return, by 31 January after the end of the tax year.

The checklist

• Overseas employment income — salary, bonus, commission and equity paid by a non-UK employer for duties performed outside the UK.
• Foreign dividends — from non-UK companies, including family company distributions.
• Foreign interest — bank deposits, bonds, loan notes held outside the UK.
• Overseas rental profits — computed under UK rules, not local rules, then relieved.
• Foreign capital gains — shares, funds, an overseas home, land, and disposals of business interests.
• Distributions from offshore trusts and structures — these have their own rules and almost always need advice.
• Crypto-assets — HMRC generally treats these as located where the beneficial owner is resident, which usually makes them UK situs for you. Do not assume crypto is foreign.

Three worked examples

1. Salary from a Dubai employer

You moved to London in June 2026 and kept working two weeks a month for your UAE employer. The overseas duty portion can be relieved through FIG and Overseas Workday Relief; the UK duty portion is taxable and, in most cases, needs a UK payroll or Self Assessment route. Both amounts still go on the return.

2. Selling an apartment in Portugal

You sell in November 2026 during a FIG year, making a €180,000 gain. The gain is relieved in the UK. You lose your capital gains annual exempt amount for that year, which costs far less than the tax saved. You still report the disposal, and you check the Portuguese position separately.

3. Indian dividend and interest income

Small amounts — say £2,400 in total. Claiming FIG here would cost you a personal allowance worth much more, so you do not claim; you report the income normally and take double tax relief for Indian tax under the treaty.

Currency and record keeping

Everything is reported in sterling. Use a consistent, defensible exchange rate basis — HMRC's monthly or annual average rates are accepted — and keep the workings. Keep bank statements, contract notes, completion statements and payslips for at least six years.

Frequently asked questions

What if I forget to claim in time?

An amendment is normally possible within twelve months of the filing deadline. After that the relief is usually lost, so a late claim needs to be dealt with immediately.

Do I report foreign income that I never brought to the UK?

Yes. Under FIG, remittance is irrelevant — disclosure is not.

Is my foreign pension covered?

Foreign pension income can fall inside FIG, but the treaty position of the paying country matters and lump sums are treated differently from periodic payments. This one always deserves a conversation.

Do I still need to complete a US return?

If you are a US citizen or green card holder, yes — every year, wherever you live. We prepare the UK and US returns side by side so the credits line up.