Financial Planning for New Arrivals to the UK: Making the Most of Your First Four Years

Arriving in the UK for the first time as a tax resident creates both opportunities and administrative obligations that many new arrivals are poorly prepared for. The introduction of the Foreign Income and Gains (FIG) regime from April 2025 — replacing the old remittance basis system for non-domiciles — has significantly improved the tax position for new residents in their first four years. But the benefits are not automatic, and the planning decisions made in the first twelve to eighteen months can have lasting consequences for wealth that will outlast the FIG window.

This guide covers the financial and administrative priorities for individuals who have recently become, or are about to become, UK tax resident for the first time.

The FIG regime: four years of tax freedom

From 6 April 2025, individuals who become UK tax resident for the first time — or who return to the UK after a minimum of ten consecutive tax years of non-UK residence — are entitled to the Foreign Income and Gains (FIG) regime for their first four tax years of UK residence.

Under FIG:

• Foreign income (employment income earned overseas, rental income from overseas property, interest, dividends from non-UK sources) is not subject to UK income tax
• Foreign capital gains (gains on non-UK assets, offshore investment portfolios, overseas property) are not subject to UK CGT

No claim is required from the first year; the relief is the default position for eligible individuals. The FIG regime is available regardless of domicile — unlike the old remittance basis, which was linked to non-domicile status.

For wealthy individuals who are resident in the UK but have substantial overseas income streams or investment portfolios, the four-year FIG window is potentially very valuable. A portfolio generating £500,000 per year of overseas dividend income would — under the old regime requiring payment and claiming remittance basis — face complex planning. Under FIG, it is simply exempt from UK tax for four years without any action required.

The FIG regime does not apply to income and gains arising on UK-situs assets — these are fully taxable from day one of UK residence.

Strategic use of the FIG period

The four-year FIG window creates significant planning opportunities, but it requires careful timing:

Remittances during FIG: the FIG rules do not restrict remittances of foreign income and gains to the UK during the four-year period. An individual can bring overseas funds to the UK freely without triggering UK tax, unlike the old remittance basis where remittances were taxed. This makes the FIG period an excellent time to remit funds for UK investment, property purchase, or other purposes.

Restructuring overseas holdings: the four years in which overseas gains are exempt provides a window to restructure overseas investment portfolios — selling appreciated assets, resetting the CGT base, rebalancing — without UK tax consequences. Post-FIG, gains from the same assets would be fully subject to UK CGT.

Pension structuring: the FIG window may be the appropriate time to crystallise pension benefits from overseas schemes, transfer QROPS to UK pension arrangements, or take lump sums from overseas schemes — depending on the specific rules of the scheme and any applicable double tax treaties.

Large remittances of pre-UK assets: individuals bringing significant capital to the UK for investment or property purchase should consider timing these remittances within the FIG period to ensure there are no residual questions about the tax treatment.

After the four-year FIG period ends, the individual is subject to UK tax on worldwide income and gains in the normal way. Planning the transition from FIG to full UK tax residency — particularly the treatment of any offshore income and gains that have accumulated during the FIG years but not yet been remitted — requires specialist advice.

Opening a UK bank account

One of the most immediate practical challenges for new arrivals is opening a UK bank account. Standard high street banks require:

• Proof of identity (passport)
• Proof of UK address (utility bill, council tax bill, or letter from an employer or letting agent on headed paper)
• National Insurance number (for some banks)

The address proof requirement is a significant obstacle for individuals who have not yet received utility bills or official correspondence at a UK address — which is common in the first weeks after arrival.

Practical alternatives:

• Expat bank accounts: some banks offer accounts specifically for newly arrived individuals, requiring only a letter from an employer or a tenancy agreement rather than utility bills. These include Lloyds International, Barclays International, and HSBC Expat (note: some of these are Isle of Man or Jersey-based accounts, not UK current accounts).
• Digital banks (Monzo, Revolut, Starling): often have simpler onboarding requirements and can be opened more quickly than traditional banks. Useful as a bridging account while the main bank account is established.
• Private banks: for UHNW individuals, private banking relationships (Coutts, Weatherbys, C. Hoare & Co.) have flexible onboarding processes and can often accommodate new arrivals who bring substantial assets.

National Insurance number

A National Insurance (NI) number is required for employment, accessing benefits, and making pension contributions. New arrivals should apply for an NI number promptly through the GOV.UK portal. The application process involves an online form and, in some cases, an in-person interview at a Job Centre Plus. The number is typically issued within a few weeks.

The NI number is separate from the NI record, which tracks qualifying years towards the State Pension. An individual can begin building their NI record only once they have been issued an NI number and are either working (paying Class 1 NI) or paying Class 3 voluntary contributions.

NHS registration

UK residents are entitled to use the NHS, regardless of nationality. New arrivals should register with a local GP (General Practitioner) as soon as possible. The GP registration requires proof of address and is free at the point of use.

Healthcare for international arrivals differs based on immigration status. Individuals on most work visas (skilled worker, global talent, etc.) must pay the Immigration Health Surcharge (currently £1,035 per year for most visa categories, as of 2026) as part of their visa application. This provides entitlement to NHS treatment equivalent to that available to UK nationals.

Private medical insurance is commonly purchased by new arrivals, particularly for faster access to specialist consultations and elective procedures. For internationally mobile professionals, International Private Medical Insurance (IPMI) covering both UK and overseas treatment may be more appropriate than a UK-only policy.

Council tax

Council tax is a local government tax on residential property, levied at a rate that depends on the property's council tax band (assessed value band) and the local authority. It is the occupier's responsibility, not the property owner's where these are different.

New residents should register for council tax with their local authority within a few weeks of arriving at their UK address. Full-time students and, in some cases, diplomatic or overseas government employees may be exempt from council tax.

UK driving licence

EU/EEA driving licences can generally be used in the UK until age 70 (or for three years after becoming resident, whichever is longer) and can be exchanged for a UK licence without a test. Licences from certain "designated" non-EU countries (including Australia, South Africa, Canada, and some US arrangements) can be exchanged directly without retaking the driving test, but must be exchanged within twelve months of becoming resident if you wish to keep driving on them, subject to a checking process at the DVLA. Licences from non-designated countries generally allow driving for only twelve months, after which a UK test is required. Check the current country-by-country exchange rules on GOV.UK, as these change periodically.

Building UK credit history

Many newly arrived UK residents — even those who are wealthy internationally — face a "thin file" problem with UK credit reference agencies. A person who has lived their financial life in another country has no UK credit history, which can result in declined applications for credit cards, mortgages, or mobile phone contracts.

Practical steps to begin building UK credit history:

• Open a UK bank account as quickly as possible — account history contributes to credit records
• Apply for a basic credit card (secured credit cards or credit-builder cards may have easier acceptance criteria) and use it regularly, paying the balance in full each month
• Ensure you are registered on the electoral roll at your UK address
• Set up direct debits for regular bills (council tax, broadband, utilities) — consistent payment history improves credit scores

It typically takes six to twelve months to build a credit profile sufficient for a standard mortgage application. International mortgages (from lenders with specific products for individuals with overseas income and limited UK credit history) may be available as an interim solution.

Pension auto-enrolment

Employees in the UK earning above the auto-enrolment threshold (£10,000 per year, 2026/27) are automatically enrolled into a workplace pension scheme by their employer. Employee contributions of at least 5% and employer contributions of at least 3% are the minimum under auto-enrolment rules.

For new arrivals taking up UK employment, auto-enrolment will operate automatically — the employer enrols the employee and the pension contributions appear as deductions from payroll. New employees have the option to opt out, but should consider carefully before doing so: employer contributions are effectively additional compensation, and the tax relief on personal pension contributions makes them highly efficient for UK taxpayers.

For the self-employed or those not in UK employment, pension contributions can be made to a SIPP up to £3,600 per year (gross) without needing any relevant earnings — or up to the annual allowance (£60,000 for most individuals) against relevant UK earnings.

Claiming the personal allowance

UK residents are entitled to the personal allowance (£12,570 for 2026/27) — the amount of income that can be received before income tax is due. However, the personal allowance is withdrawn at a rate of £1 for every £2 of income above £100,000. For individuals with income above £125,140, the personal allowance is entirely withdrawn, making the effective marginal tax rate on income in the £100,000–£125,140 band 60%.

Non-UK residents can also claim the personal allowance if they are EEA nationals or if entitled under the provisions of an applicable double tax treaty. This is relevant for UK source income (dividends from UK companies, rental income from UK property) received by individuals who are not yet fully UK resident.

Tax returns for new arrivals

New arrivals who become UK tax resident mid-year should note that the UK tax year runs from 6 April to 5 April. The first UK tax return will cover the period from the date of arrival (technically, the first day of the tax year in which they became resident, though split-year treatment may apply) to 5 April. Split-year treatment — which limits UK taxation to UK-source income and gains during the pre-arrival portion of the tax year — may be available where the conditions are met.

Compliance note

The FIG regime was introduced from April 2025; this guide reflects the legislation and HMRC guidance as understood at mid-2026. Tax rules are complex and subject to change. Nothing in this guide constitutes personal tax advice. New arrivals with substantial overseas income, investment portfolios, or complex financial circumstances should seek specialist advice from a qualified international tax adviser before or immediately upon becoming UK tax resident.

How Global Investments Can Help

Global Investments specialises in advising individuals making the transition to UK tax residency — structuring their financial affairs to make the most of the FIG window, remitting overseas funds efficiently, and establishing the pension, investment, and estate planning foundations they will need for the long term. With offices in Cyprus and connections across the jurisdictions from which many of our new-arrival clients originate, we understand both the UK and the overseas dimensions of this transition. Contact us to arrange an initial consultation before or shortly after your arrival in the UK.