Do I Pay Tax on Money Sent From Abroad to the UK?

It depends on what the money is. Transferring your own existing savings to the UK is not taxable — it’s a movement of capital, not income. But income earned overseas while you’re UK tax resident is taxable in the UK on the arising basis, with the old remittance basis (the “non-dom” system) abolished from 6 April 2025 and replaced by the 4-year Foreign Income and Gains (FIG) regime.

This is the full picture for 2026/27, with worked examples for the most common cases.

What HMRC actually taxes

UK income tax is charged on:

• UK income for everyone resident in the UK.
• Worldwide income for UK residents from 6 April 2025 onward (under the new FIG regime), with a transitional 4-year exemption for newly-arrived UK residents.
• Capital gains on worldwide assets for UK residents, similarly with the 4-year FIG exemption.

What HMRC does not tax:

• Moving your own existing capital from one account to another, including across borders. A transfer of £50,000 from your Mumbai bank account to your London account is not income — it’s your own money.
• Inheritances received from abroad (though Inheritance Tax may apply in the country of the deceased’s residence or domicile).
• Gifts received from abroad (though UK Inheritance Tax can apply 7 years later if the giver dies and is UK domiciled).

The distinction between “capital transfer” and “income” is what matters. HMRC’s guidance is at gov.uk: tax on foreign income.

What changed in April 2025 — the end of non-dom

Until 5 April 2025, UK tax residents who were domiciled outside the UK could claim the remittance basis — they paid UK tax only on UK income, and on foreign income they brought into the UK. Foreign income kept abroad wasn’t taxed in the UK.

From 6 April 2025, the non-dom regime was abolished. The new framework is:

• All UK residents are taxed on worldwide income and gains by default.
• Newly-arrived UK residents (people who haven’t been UK resident for the last 10 years) can claim the Foreign Income and Gains (FIG) regime for their first 4 years of UK residence. Foreign income and gains during those 4 years are exempt from UK tax, even if remitted to the UK.
• After 4 years, full worldwide taxation begins.

The full transitional rules are at HMRC: changes to non-UK domiciled individuals. [VERIFY: confirm specific FIG mechanics with HMRC manual, especially around what counts as “foreign income” and the election process.]

This is a major shift from the previous system and applies even if you brought wealth to the UK before April 2025 — old non-dom protections on pre-April 2025 wealth follow special transitional rules.

What types of transfers are not taxable?

The following are not taxable when sent to the UK:

• Your own existing savings — money you accumulated before becoming UK resident, or from non-taxable sources.
• Gifts from family — receiving gifts is not taxable for the recipient. The donor may have tax obligations in their country.
• Inheritances — receiving an inheritance is not taxable for the UK recipient (the estate may have been taxed in the country of death).
• Sale proceeds from a non-UK home that was your only or main residence and qualifies for relief — though this can interact with UK CGT if you became UK resident in a complex way.
• Loan proceeds — borrowed money is not income.

What matters is whether the underlying money was income or gain that should have been taxed somewhere, and whether you’re UK resident when the income arose.

What types of transfers are taxable?

These are taxable in the UK (subject to the 4-year FIG exemption if you’re newly arrived):

• Salary or self-employment income earned abroad while UK resident.
• Rental income from overseas property while UK resident.
• Investment income (interest, dividends) from foreign accounts while UK resident.
• Capital gains on overseas investments sold while UK resident.
• Pension income from foreign pension schemes while UK resident (with treaty modifications).

For each of these, the UK can tax the income whether or not you bring it to the UK — that’s the “arising basis” that now applies to most UK residents.

Double taxation — the treaty network

The UK has tax treaties with most major countries. Treaties typically:

• Give the country where the income arose primary taxing rights.
• Allow the UK to also tax the income, but give a credit for foreign tax paid.
• Prevent “double taxation” on the same income.

A worked sequence:

• You earn £10,000 of Indian rental income while UK resident in 2026/27.
• India taxes that rental income at Indian rates.
• The UK also taxes it at your UK marginal rate.
• You claim a credit on your UK Self Assessment for the Indian tax paid.
• Net UK tax: your UK tax minus the Indian tax paid (but never negative).

This applies to most types of foreign income. The exact mechanics for each country are in the relevant treaty — see gov.uk: tax treaties.

Reporting requirements

If you have foreign income or gains while UK resident, you typically need to:

• Register for Self Assessment if not already registered.
• File a Self Assessment return annually, declaring the foreign income on the relevant supplementary pages.
• Claim foreign tax credits where you’ve paid tax abroad.

The deadlines are:

• Register for Self Assessment by 5 October following the tax year in which you first need to.
• File online by 31 January following the tax year end.
• Pay any tax due by 31 January (with possible payment on account).

Penalties for late or incorrect returns can be significant — particularly for foreign income, where HMRC penalty rates are tougher.

Worked example: new arrival from Australia in October 2025

Emily moves to the UK from Australia on 1 October 2025 to take a UK job. Her position:

• First UK tax year: 2026/27.
• Status under FIG: she hasn’t been UK resident in the last 10 years, so she qualifies for the 4-year FIG exemption.
• Transfers brought with her: AUD 80,000 from Australian savings, equivalent to ~£42,000 (at AUD 1 = £0.53). Not taxable — capital, not income.
• UK salary: £55,000 — taxed in the UK as normal.
• Australian rental income during 2026/27 (post-arrival period): under FIG, this is exempt from UK tax for the first 4 years. Australia still taxes it.
• Australian dividends from existing share portfolio: exempt under FIG for 4 years.

After 4 years (from 2029/30), Emily would be on worldwide taxation. She might choose to restructure her Australian holdings before then to optimise tax.

When transfers can look like taxable income (but aren’t)

A few scenarios that often raise questions:

• Repaying a loan from family abroad — not taxable; it’s capital movement, not income.
• Selling personal possessions from abroad — generally not taxable if the items were genuinely personal (not investments). High-value collectibles may be different.
• Repatriating savings from a former overseas job — not taxable; this is your own money.
• Cryptocurrency held abroad transferred to UK — the transfer isn’t the taxable event; selling or exchanging the crypto is, and CGT applies to gains while UK resident.

If you’re in any doubt, professional tax advice is cheaper than a wrong Self Assessment correction.

Internal links

• Do non doms pay tax on foreign income UK?
• How to file a self assessment tax return for the first time
• What is the personal allowance and how does it work?

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This guide is information, not regulated financial advice. International tax post the 2025 non-dom changes is technical and individual circumstances vary widely — speak to a qualified UK tax adviser before relying on a specific position.