HMRC's published guidance on expat tax, the FIG regime, TRF, non-dom rules, cryptocurrency, side hustles and HMRC nudge letters — summarised with five years of official rates and direct links to GOV.UK sources.
All figures sourced from HMRC / GOV.UK. Always verify on GOV.UK before acting.
This page summarises HMRC's published guidance on cross-border and special situation tax rules. Every section links directly to the relevant GOV.UK source. It is not tax advice — for advice specific to your circumstances, speak with a qualified tax professional.
According to HMRC's published guidance on non-domiciled residents, the Finance Act 2025 abolished the remittance basis of taxation from 6 April 2025. The UK now operates a residence-based system: whether you pay UK tax on worldwide income and gains is determined by your residence status under the Statutory Residence Test (HMRC RDR3) — not by domicile.
The new framework published by HMRC has three main components:
Before any other cross-border question can be addressed, HMRC requires you to establish your residence status. HMRC's RDR3 guidance note sets out a three-part test:
| Test type | HMRC condition | Result | HMRC source |
|---|---|---|---|
| Automatic UK | 183+ days in UK in the tax year | UK resident | GOV.UK |
| Automatic UK | Only home in UK 91+ consecutive days & visited 30+ days | UK resident | GOV.UK |
| Automatic UK | Full-time UK work for 365-day period | UK resident | GOV.UK |
| Automatic overseas | Fewer than 16 days in UK (46 if not resident prior 3 years) | Non-resident | GOV.UK |
| Automatic overseas | Full-time overseas work, <91 days in UK, ≤30 UK work days | Non-resident | GOV.UK |
| Sufficient ties | Intermediate day counts + 1–5 UK ties | Depends on ties | RFIG20500 |
According to HMRC's Cryptoassets Manual (CRYPTO) on GOV.UK, cryptoassets are treated as property for tax purposes — not currency. Every disposal (selling, swapping, spending, gifting other than to a spouse) is a Capital Gains Tax event. HMRC's guidance further states that the situs (location) of a cryptoasset follows the beneficial owner's UK tax residence — not the jurisdiction of the exchange, server or storage device. This means UK tax residents are subject to UK CGT on all crypto disposals worldwide.
HMRC's published guidance on the trading allowance confirms the £1,000 gross threshold remains unchanged for 2025/26 and 2026/27. Separately, HMRC's platform reporting rules (DAC7) require digital platforms to report seller income to HMRC directly. HMRC confirmed in March 2025 that from 2027/28 a simplified reporting route will apply for gross trading income between £1,000 and £3,000, but the trading allowance itself remains at £1,000.
According to HMRC's published guidance on the Worldwide Disclosure Facility, where an individual has undisclosed offshore income or gains, the WDF is the correct and required route for making a disclosure — amending a Self Assessment return is not sufficient for offshore matters. HMRC's guidance also confirms that offshore penalties under the 'Requirement to Correct' legislation can reach up to 200% of the tax owed, but that voluntary unprompted disclosure substantially reduces this.
This is a simplified illustration of how HMRC's FIG regime works in principle. Individual circumstances vary significantly. This is not tax advice — speak with a qualified adviser.
Each section summarises HMRC's published guidance with direct GOV.UK source links. None of this constitutes personal tax or financial advice.
HMRC's Statutory Residence Test, split-year treatment, foreign income reporting on SA106, double tax treaties and the FIG regime — as published on GOV.UK.
SRT · RDR3 · Split Year · SA106FIG regime, TRF (12%/15%), IHT 10-out-of-20 rule, mixed funds cleansing and trust structures — per HMRC's Finance Act 2025 guidance.
FIG · TRF · IHT · RDRMHMRC's Cryptoassets Manual: CGT on disposals, income tax on staking and mining, s.104 pooling rules, situs, CARF and SA108 reporting.
CRYPTO Manual · CGT 18/24% · CARFHMRC's trading allowance rules, DAC7 platform reporting obligations, Self Assessment registration and MTD — as published on GOV.UK.
£1,000 allowance · DAC7 · MTDHMRC's Temporary Repatriation Facility: designate pre-April 2025 funds at 12%, mixed fund rules, TRF capital accounts (RDRM75000).
12% rate · RDRM73000–75500What HMRC's 'one to many' letters mean, the Worldwide Disclosure Facility (WDF) as HMRC's required disclosure route, and offshore penalty rules.
CRS · DAC7 · WDF · Req. to CorrectCross-border tax is fact-specific. Our free matching service connects you with verified UK specialists — accountants and tax advisers — for personal advice on your situation.
Search HMRC's published guidance quickly using our AI — available 24/7. Not a substitute for professional advice.
Available 24/7Cross-border situations frequently involve prior-year returns and voluntary disclosures. All figures below are sourced from HMRC's published rates on GOV.UK.
| Tax Year | Annual Exempt Amount | CGT — basic rate | CGT — higher/add. rate | Notes |
|---|---|---|---|---|
| 2022/23 | £12,300 | 10% | 20% | Pre-Budget 2024 rates |
| 2023/24 | £6,000 | 10% | 20% | Halved by Spring Budget 2023 |
| 2024/25 (to 29 Oct 2024) | £3,000 | 10% | 20% | Old rates: disposals before 30 Oct 2024 |
| 2024/25 (from 30 Oct 2024) | £3,000 | 18% | 24% | Autumn Budget 2024 increase |
| 2025/26 | £3,000 | 18% | 24% | Confirmed |
| 2026/27 | £3,000 | 18% | 24% | Confirmed — no changes announced |
Source: GOV.UK — Capital Gains Tax rates and allowances
| Tax Year | Personal Allowance | Basic rate (20%) | Higher rate (40%) | Additional rate (45%) |
|---|---|---|---|---|
| 2022/23 | £12,570 | £12,571–£50,270 | £50,271–£150,000 | Over £150,000 |
| 2023/24 | £12,570 | £12,571–£50,270 | £50,271–£125,140 | Over £125,140 |
| 2024/25 | £12,570 | £12,571–£50,270 | £50,271–£125,140 | Over £125,140 |
| 2025/26 | £12,570 | £12,571–£50,270 | £50,271–£125,140 | Over £125,140 |
| 2026/27 | £12,570 | £12,571–£50,270 | £50,271–£125,140 | Over £125,140 |
Source: GOV.UK — Income Tax rates and allowances. Personal Allowance frozen until April 2031 per published HMRC policy.
| Phase | Tax Years | TRF Charge Rate | Standard rate (if not designated) | Status |
|---|---|---|---|---|
| Phase 1 | 2025/26 & 2026/27 | 12% | Up to 45% | Current — open now |
| Phase 2 | 2027/28 | 15% | Up to 45% | Opens April 2027 |
| Phase 3 | From 6 April 2028 | Closed | Up to 45% | TRF closed permanently |
Source: HMRC RDRM73000 and Finance Act 2025, Schedule 2.
| Tax Year | Trading Allowance (gross) | SA registration threshold | Platform (DAC7) reporting |
|---|---|---|---|
| 2022/23 | £1,000 | £1,000 | Not yet in force |
| 2023/24 | £1,000 | £1,000 | Platforms began data collection |
| 2024/25 | £1,000 | £1,000 | First mandatory reports filed Jan 2025 |
| 2025/26 | £1,000 | £1,000 | Fully operational — HMRC receives data |
| 2026/27 | £1,000 | £1,000 (£3,000 simplified route from 2027/28) | CARF also active for crypto exchanges |
Sources: GOV.UK trading allowance · GOV.UK DAC7 platform reporting
According to HMRC's guidance on tax on foreign income, your UK residence status — determined under the Statutory Residence Test (RDR3) — determines whether you pay UK tax on worldwide income or only on UK-source income. HMRC's guidance states that non-residents pay UK tax only on UK-source income; UK residents pay on worldwide income.
The SRT involves complex fact-specific analysis. HMRC publishes a free online residence status checker on GOV.UK. For anything beyond the automatic tests, speak with a qualified tax adviser.
According to GOV.UK, when you move in or out of the UK, the tax year may be split into a UK-resident part and a non-resident part — known as split-year treatment. HMRC's RDR3 guidance sets out eight specific 'cases' under which split-year treatment applies. It is not elective — your circumstances must meet the legal conditions. HMRC's guidance states you should claim it on the SA109 supplementary pages of your Self Assessment return.
Individual circumstances vary. This illustrates the principle only. Always confirm your split-year case with a qualified specialist.
According to HMRC's published guidance on non-domiciled residents, the Finance Act 2025 abolished the remittance basis from 6 April 2025 — replacing it with a strictly residence-based system. Domicile is no longer relevant for Income Tax or CGT purposes from that date.
Per HMRC's guidance, to qualify for the FIG regime an individual must:
HMRC's guidance confirms that during the 4-year FIG period, qualifying foreign income and gains may be brought to the UK at any time without any UK tax charge. In year five of UK residence and beyond, worldwide income and gains are taxed on the arising basis at standard rates.
The TRF is documented in HMRC's internal manual RDRM73000 and legislated under Finance Act 2025, Schedule 2. It is available to former remittance-basis users who have pre-April 2025 untaxed foreign income and gains (FIG) offshore.
A critical feature of the TRF — confirmed in HMRC's manual — is that designation on a Self Assessment return and payment of the TRF charge is all that is required to secure the discounted rate. The funds do not need to be physically moved to the UK at the time of designation. Once designated and the charge paid, those funds become 'TRF capital' and can be remitted to the UK at any future date — including after the TRF window closes on 5 April 2028 — with no further UK tax charge. See HMRC RDRM75100 for HMRC's definition of TRF capital.
To secure the 12% rate for the 2025/26 tax year, HMRC's rules require the designation to appear on a Self Assessment return that is filed or amended by the amendment deadline of 31 January 2028. Designations made in the 2026/27 return (filed by 31 January 2027, or amended by 31 January 2028) also qualify for the 12% rate. The 15% rate applies to designations in the 2027/28 return only.
According to HMRC's manual RDRM75100, special rules apply where offshore funds are held in 'mixed accounts' — accounts containing a blend of pre-arrival clean capital, taxable income and taxable gains. HMRC's guidance confirms that under the new Step A1 introduced by Finance Act 2025 (section 809Q ITA 2007), TRF capital is treated as remitted in priority to all other types of income and capital in a mixed fund. See RDRM75200 for the full mixed fund ordering rules.
HMRC's manual also provides for a TRF capital account — a nominated separate overseas bank account to which TRF capital can be transferred, keeping it separate from other funds and preventing it from being inadvertently spent offshore. See RDRM75310 for HMRC's rules on TRF capital accounts.
This illustrates HMRC's published TRF rate only. Actual tax payable depends on individual circumstances, fund composition and eligibility. This is not tax advice.
HMRC's guidance is clear: pre-April 2025 FIG designated after 2027/28 will be taxed at full marginal rates. If you hold untaxed offshore funds and were formerly a remittance-basis user, speaking with a qualified adviser who understands the TRF mechanics is important before the window closes.
According to HMRC's Cryptoassets Manual on GOV.UK, cryptoassets are treated as property — not currency — for tax purposes. HMRC's guidance states that almost every interaction with a cryptoasset creates a tax event. HMRC's manual also clarifies the situs rule: the location of a cryptoasset for UK tax purposes is determined by the beneficial owner's tax residence, not the jurisdiction of any exchange, server or storage device.
This applies HMRC's published rates to hypothetical figures. It is illustrative only and is not tax advice. Individual circumstances affect the outcome significantly.
From 2026, HMRC's published guidance confirms that UK crypto service providers must report transaction data under the Crypto-Asset Reporting Framework (CARF). Combined with the Common Reporting Standard (CRS) data-sharing agreements with 100+ countries, HMRC receives transaction histories from global exchanges. HMRC's published guidance on the Digital Disclosure Service explains the process for correcting underdeclared gains.
According to HMRC's published guidance on tax-free allowances, individuals may receive up to £1,000 of gross trading income per tax year without paying Income Tax or NICs — known as the trading allowance. HMRC's guidance states this is a gross figure (before expenses). There is no new tax on side hustles — the existing rules have always applied. What has changed is HMRC's access to data.
According to HMRC's published guidance on digital platform reporting, digital platforms (Airbnb, eBay, Etsy, Vinted, Uber, Deliveroo, Fiverr and others) must report seller income to HMRC annually under DAC7. First mandatory reports were filed in January 2025. HMRC now receives this data before taxpayers file their returns.
HMRC confirmed in March 2025 that from the 2027/28 tax year, a simplified online reporting process will apply to gross trading income between £1,000 and £3,000, replacing the requirement for a full SA100 for many in that band. The trading allowance (£1,000) itself does not change. GOV.UK trading allowance guidance
Illustrative only. Individual tax rates, allowances and circumstances vary. Not tax advice.
HMRC's 'one to many' compliance letters (commonly called nudge letters) are issued when HMRC's data — from the Common Reporting Standard (CRS), DAC7 platform reports, CARF crypto data, or other risk indicators — suggests a possible discrepancy with a taxpayer's return. According to HMRC's published Worldwide Disclosure Facility guidance, where undisclosed offshore income or gains are identified, the WDF is the required route for making a disclosure. HMRC's guidance is explicit: simply amending a Self Assessment return is not the correct approach for offshore matters.
HMRC's published guidance on offshore matters confirms that penalties under the Requirement to Correct regime can range from 30% to 200% of the tax owed depending on the category of territory and the nature of the failure. HMRC's guidance confirms that voluntary unprompted disclosure substantially reduces these penalties — typically to 0–30% for innocent errors in Category 1 territories. See GOV.UK: offshore penalty guidance.
According to GOV.UK's WDF guidance, the WDF is HMRC's online service for voluntarily disclosing undeclared offshore income, gains and assets. HMRC confirms that using the WDF before they contact you constitutes an 'unprompted' disclosure, which results in lower penalties. The facility is open indefinitely and is accessed through the HMRC Digital Disclosure Service.
HMRC's guidance is clear about the WDF being the required route for offshore disclosures. If you have received a nudge letter or have concerns about undisclosed income from overseas accounts, crypto or digital platforms, a qualified tax adviser can assess your position and assist with any required disclosure. Our free matching service can connect you with verified UK specialists.
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This page summarises HMRC's published guidance — it is not personal tax advice. For advice specific to your circumstances, our free matching service connects you with verified UK tax specialists in expat tax, non-dom/FIG, crypto, HMRC enquiries and more. No charge to you — ever.
Answers based on HMRC's published guidance, with direct GOV.UK source links. Not tax advice — speak with a qualified professional for advice specific to your situation.
This page summarises HMRC's published rules — it is not personal advice. Our free matching service connects you with verified UK tax specialists for advice tailored to your circumstances.
Find a specialist →Important — information only, not tax or financial advice. UK Tax Hero summarises HMRC's published guidance as a free information and expert-matching service. Nothing on this page constitutes personal tax advice, financial advice or legal advice. Every individual's circumstances are different. Figures, rates and rules shown are based on HMRC's published guidance for tax years 2022/23 to 2026/27 and may be subject to change. Always verify information directly on GOV.UK and seek advice from a qualified tax professional before making any decisions. References to HMRC's internal manuals (RDRM, CRYPTO, etc.) are provided for information — they are not a substitute for professional advice on your specific facts. UK Tax Hero is not regulated by HMRC, the FCA or any professional body.
