by Asim Abbas
11 November 2026 
Foreign income: what UK residents must declare after the non-dom changes
Foreign income: what UK residents must declare after the non-dom changes
If you’re UK tax resident, you’re generally taxed on your worldwide income and gains, including overseas rent, foreign bank interest, dividends and pensions.
- UK residents are taxed on worldwide income
- The remittance basis ended in April 2025
- New arrivals may claim the four-year FIG regime
- Foreign tax credit relief prevents double tax
The remittance basis for non-doms ended in April 2025, replaced by a four-year regime for new arrivals. Most long-term UK residents now pay UK tax on foreign income as it arises.
This guide explains what must be declared, how to avoid double tax and what to do if you’ve missed income.
Foreign income to declare
- Rental income from overseas property
- Interest from foreign bank accounts
- Dividends from overseas shares
- Foreign pensions
- Employment income for work done abroad
- Gains on overseas property or investments
You report foreign income on the SA106 foreign pages of your Self Assessment return. Converting to sterling at the right exchange rate is essential.
The April 2025 changes
The non-dom remittance basis was abolished from 6 April 2025. People arriving in the UK after at least ten consecutive years of non-residence can claim the foreign income and gains regime for their first four years of residence, during which foreign income and gains are exempt. Everyone else is taxed on the arising basis.
Income tax calculator
Include foreign income.
Farah, UK resident for 20 years, owns a flat in Lahore producing rent of £4,800 a year after local costs. Pakistan deducts tax of £300. In 2026/27 she declares the £4,800 on her SA106 pages. As a higher rate taxpayer, UK tax is £1,920, reduced by £300 foreign tax credit, so she pays £1,620 to HMRC.
Avoiding double tax
Where foreign tax has been paid, you can usually claim Foreign Tax Credit Relief, limited to the lower of the foreign tax and the UK tax on that income. Double tax treaties may also reduce foreign withholding taxes on dividends and interest. See our double taxation guide.
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Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179HMRC data sharing
Under the Common Reporting Standard, over 100 countries share financial account information with HMRC. HMRC regularly sends letters to people with overseas accounts asking them to check their returns.
If you’ve missed foreign income
Use the Worldwide Disclosure Facility to correct past years. HMRC can go back 12 years for offshore non-compliance, and penalties are higher than for UK income. Coming forward unprompted keeps them lower. If you’ve received a letter, see our guide to HMRC letters about income abroad.
Overseas property
Foreign property income is calculated under UK rules, so mortgage interest restrictions apply. Overseas property losses can only be carried forward against future overseas property profits.
See HMRC’s guide to tax on foreign income and our foreign income tax returns service.
What should I do next?
Rent, interest, dividends.
Using HMRC rates.
Keep evidence.
Frequently Asked Questions
Do I pay UK tax on foreign income?
If you are UK resident, generally yes, on worldwide income.
What replaced the remittance basis?
A four-year foreign income and gains regime for new arrivals, from April 2025.
How do I avoid paying tax twice?
Claim Foreign Tax Credit Relief for tax paid abroad, up to the UK tax due.
Which form do I use for foreign income?
The SA106 foreign pages of your Self Assessment return.
What if I didn’t declare foreign income?
Use the Worldwide Disclosure Facility. Coming forward reduces penalties.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
