The FIG regime and illustration

In this lesson

1. 0:00 The FIG Regime explained
2. 1:03 Foreign gains claim mechanics
3. 2:25 Consequences of making a claim
4. 3:07 Worked example: Should Ann claim?
5. 4:57 Decision framework for FIG claims

About this lesson

This video covers who qualifies, the four-year window for claims, the tax consequences of claiming foreign gains relief, and the practical tax planning considerations you need to evaluate. You'll work through a real example to see when claiming saves tax and when it doesn't—essential knowledge for ATX and Advanced Taxation scenarios involving recently arrived UK residents. The FIG regime applies to individuals who've become UK resident after at least ten consecutive years abroad. During their first four tax years of UK residence, they can choose to claim relief on foreign income, foreign gains, both, or neither. If you claim foreign gains relief, those gains aren't charged to UK capital gains tax and losses on foreign assets aren't allowable—but you also lose your annual exempt amount for that year. The key to tax planning is comparing your net foreign gains against your annual exemption: if foreign gains exceed the exemption, claim it; if they're below it, don't. Claims must be made within 12 months of 31 January following the tax year end, and they're made separately for each of the four eligible years. After the fourth year, the individual is taxed on worldwide gains like any other UK resident, so the regime no longer applies.

Duration: 6m