Compare the Remittance Basis Charge (RBC) versus the arising basis of taxation. Find your breakeven point for overseas income.
RBC vs Arising Basis Comparison
Years of UK residence category—
Applicable Remittance Basis Charge (RBC)—
Arising basis — total tax (UK + overseas income)—
Remittance basis — UK income tax—
Remittance basis — RBC charge—
Remittance basis — total cost (tax + RBC)—
Saving/cost vs arising basis—
Breakeven overseas income (where RBC is worthwhile)—
Non-Dom Tax: Remittance Basis vs Arising Basis
UK resident individuals who are not domiciled in the UK have historically had the option to choose between two bases of taxation: the arising basis (worldwide income taxable as it arises) or the remittance basis (overseas income only taxable when brought to the UK). For long-term residents, a fixed annual charge — the Remittance Basis Charge — is payable to access the remittance basis.
From 6 April 2025, the government introduced the new Foreign Income and Gains (FIG) regime, which replaces the old remittance basis for most purposes. However, transitional provisions mean the RBC and old non-dom rules remain relevant for those already in the UK under the old regime. The calculator above applies the 2025/26 rules in effect.
RBC Tier Structure
Years of UK Residence
Remittance Basis Position
RBC (2025/26)
Under 7 years
Remittance basis available for free (no RBC)
£0 — but lose PA and AEA
7–11 years
RBC applies if remittance basis claimed
£30,000 per year
12–14 years
Higher RBC applies
£60,000 per year
15+ years
Deemed domicile — arising basis only
N/A — cannot use remittance basis
PA = Personal Allowance (£12,570 in 2025/26). AEA = Annual Exempt Amount for CGT. Losing these when using the remittance basis is an additional cost to factor in.
The Breakeven Calculation
The breakeven point is the amount of overseas income at which the tax saved on using the remittance basis exactly equals the cost of the RBC. Formula: Breakeven = RBC ÷ Tax rate. At overseas income above breakeven, the remittance basis saves money (assuming that income stays overseas). Below breakeven, the arising basis is cheaper.
Frequently Asked Questions
The Remittance Basis Charge (RBC) is an annual fixed charge payable to HMRC by long-term UK resident non-domiciles who wish to use the remittance basis of taxation. It is £30,000 per year for those resident for 7 to 11 of the past 14 years, and £60,000 for those resident for 12 to 14 of the past 14 years.
On the arising basis, you are taxed on worldwide income and gains whether or not you bring them to the UK. On the remittance basis, overseas income and gains are only taxed when remitted (brought) to the UK. The trade-off is paying the RBC and losing your personal allowance and CGT annual exempt amount.
From 6 April 2017, a non-domicile individual is treated as deemed domicile after being UK resident for 15 or more of the previous 20 tax years. Once deemed domicile applies, the remittance basis is no longer available and you are taxed on the arising basis.
The government announced major reforms effective 6 April 2025, replacing the remittance basis with the FIG (Foreign Income and Gains) regime for most purposes. The FIG regime provides a 4-year exemption on foreign income and gains for new UK residents. Transitional provisions apply for existing non-doms with unremitted income.
Yes. If you elect for the remittance basis (except for the under-£2,000 de minimis), you lose entitlement to the personal allowance (£12,570 in 2025/26) and the CGT annual exempt amount. This additional cost should be factored into any comparison with the arising basis.
The breakeven is where the remittance basis saving equals the RBC cost. Formula: Breakeven = RBC ÷ Tax rate. For a 40% taxpayer paying £30,000 RBC: £30,000 ÷ 0.40 = £75,000 of overseas income. If your unremitted overseas income exceeds this, the remittance basis saves money.
Yes. If your unremitted overseas income and gains total less than £2,000 in the tax year, you can use the remittance basis without paying the RBC and without losing your personal allowance. This is the de minimis exception.
Under the remittance basis, overseas capital gains are only taxed when the proceeds are remitted (brought) to the UK. Some gains made before becoming UK domiciled may be eligible for 'rebasing', reducing the gain on disposal.
No. The RBC is a standalone annual charge. It does not give a credit against income tax or CGT payable on remittances made during the year. Paying the RBC and then making remittances results in additional tax on those remittances.
The position from 6 April 2025 is that the old remittance basis is replaced by the FIG regime for most purposes, but transitional provisions apply. Some individuals navigating the transition may still have relevance to the old RBC rules. Specialist advice for 2025/26 is essential.
The Temporary Repatriation Facility (TRF), available from 6 April 2025, allows individuals who have previously used the remittance basis to bring pre-April 2025 unremitted foreign income and gains to the UK at a reduced tax rate for a limited window, rather than their full marginal rate.
Non-domicile status has historically excluded non-UK assets from UK IHT. From 6 April 2025, significant changes apply and a new residence-based IHT test means long-term UK residents may be subject to IHT on worldwide assets regardless of domicile. Professional IHT planning advice is critical.