Introduction

The UK’s tax offering for new arrivers changed dramatically from 6 April 2025, replacing the old “non-dom” regime with a new, much simpler regime. While the new regime is available for a shorter period, it is in some ways more generous. The UK Budget on 26 November 2025 proposed a number of refinements and corrections to the new regime but no radical changes, so individuals should feel comfortable planning on the basis that the regime is here to stay. The regime offers an attractive “tax holiday” for Brazilians looking for a new home.

Moving to the UK also unlocks a number of non-tax benefits. Many leading offshore trust jurisdictions derive their law from English law, making England an ideal place from which to co-ordinate trust structures, which provide considerable asset protection and succession planning benefits. Finally, the UK (and especially London) remains a cultural, education and business powerhouse.

This article summarises the features of the new regime and highlights the key non-tax issues that Brazilians looking to move (or return) to the UK, and Brazilians already living in the UK, should bear in mind. 

Tax regime for new arrivers

The “non-dom” regime

Before 6 April 2025, “non-doms” could elect to be taxed under the favourable “remittance basis” of taxation during their first 15 years of UK tax residence. In broad terms, non-doms were subject to UK tax only on UK source income and gains, and any non-UK source income and gains which they bought into (or “remitted”) to the UK. Non-doms were also protected from inheritance tax on their non-UK assets for the first 15 years of tax residence, and trusts settled by non-doms also had preferential treatment.

However, the complexity of the regime created a significant administrative and compliance burden for clients and their advisers, as well as additional administrative costs for HM Revenue & Customs, the UK tax authority (HMRC). Two particularly unsatisfactory elements of the non-dom regime were:

• who qualified as a “non-dom” (this being defined by reference to the common law notion of domicile, which is a much more vague concept than the civil law notion of domicile) – HMRC would frequently challenge the domicile positions of long-term UK residents, resulting in costly and invasive enquiries; and
• the breadth and complexity of what constituted a “remittance” – it was possible in many circumstances for a taxable remittance to occur even if funds were not physically brought to the UK, and even if they were no longer in the taxpayer’s hands.

FIG regime

From 6 April 2025, the non-dom regime was abolished and replaced with the so-called “FIG regime” (foreign income and gains). Individuals qualify for the new FIG regime if they have been non-UK tax resident for at least 10 consecutive years. Residence is assessed by reference to the UK’s statutory residence test (which, while complex to apply, provides much greater certainty than the concept of domicile).

The main attraction of the FIG regime is that foreign income or gains (including within trust structures) are generally relieved from UK tax for an individual’s first four years of UK residence, even if those funds are brought to the UK. The FIG regime is also intended to be compatible with the UK’s extensive network of double tax agreements, which was a common issue with the previous non-dom regime.

Additionally, earnings for work done outside the UK will qualify for relief from UK tax for up to four years (capped at £300,000 per year), even if the work is for a UK employer and even if these funds are brought to the UK. 

In short, the FIG regime would therefore enable a qualifying Brazilian resident to move to the UK free of charge and pay no tax in the UK on their non-UK assets for four years, with the ability to bring into the UK as much or as little of such income and gains as they wish free of UK tax.

There is no charge for accessing these benefits (in contrast to the non-dom regime, and in contrast to other jurisdictions offering similar regimes such as Italy, which now charges €200,000 annually, soon to rise to €300,000, with additional charges for family members).

Years four to nine

The FIG regime itself only lasts for four years. However, with effective planning, new arrivers can limit their UK tax thereafter by using investment vehicles that defer tax on profits. If they leave the UK altogether before tax would be crystallised, no UK tax may arise at all.

It is worth noting that there are anti-avoidance rules which prevent individuals from ceasing UK residence temporarily to dispose of assets or receive certain types of income and then return to the UK: in certain circumstances, the income and gains will be deemed to be realised on the individual’s return to the UK.  

Because an individual becomes subject to inheritance tax on their worldwide assets from the start of year 11, many individuals will wish to leave the UK during year nine. For those nine years, however, new arrivers can enjoy limited exposure to UK tax on their non-UK income, gains and assets. It is important to remember that in years one to nine, new arrivers will be within the scope of UK inheritance tax on their assets situated in the UK (which includes indirect interests in certain categories of UK land), but a range of generous reliefs and exemptions apply (including a 100% exemption for assets passing to spouses, as well as relief for shares in trading companies).

If an individual does become subject to inheritance tax on their worldwide assets, this will remain the case for a period of time even after they cease UK residence. The precise period will be between three and ten years, depending on how long the person was UK-resident for prior to leaving. 

Other issues for new arrivers

Trusts and succession planning

Asset protection (for example, from creditors, divorcing spouses or heirs claiming their fixed portion under a forced heirship regime) is a key concern for many wealthy Brazilians.  

While a number of different types of vehicle exist that offer varying degrees of asset protection, trusts are an ideal option for Brazilians living in the UK. “Discretionary” trusts tend to offer greater protection than corporate vehicles, because the person creating the trust (known as the “settlor”) is no longer the legal owner of the assets, and the beneficiaries do not have a fixed entitlement to the assets.

Many offshore jurisdictions whose trust law derives from English law (and whose local advisers are accustomed to working with lawyers in London) also have “firewall” laws, which prevent the enforcement of foreign judgments against trust assets. This adds an additional layer of protection against third parties.

Trusts also provide a means of protecting assets (e.g. family businesses) from family disputes and enabling orderly wealth succession, as the settlor can retain a degree of control over how the assets are held, potentially for generations. By contrast, leaving assets to children outright can result in ownership fragmenting and decision-making becoming deadlocked. Good professional trustees can also help to ease the generational transition and mediate between family members in the event of disagreements.

While trusts are now rarely tax-efficient for long-term UK resident settlors, they remain a relatively tax-efficient structure for their families and for new arrivers – potentially for up to nine years if a tax deferral vehicle is incorporated into a trust structure. Once the settlor becomes subject to inheritance tax on their worldwide assets (i.e. from the start of their 11th year as a UK resident) any non-UK assets in the trust will become subject to inheritance tax charges, both periodically and potentially on the settlor’s death.

Depending on which jurisdiction an individual moves to after their time in the UK, trusts can continue to be tax-efficient: many clients who have left the UK (or have never had any ties to the UK) continue to use these structures.

Moving to the UK and being introduced to trusts can therefore be a catalyst for Brazilians to think about issues such as asset protection, governance and succession planning more generally.

Given the complexities that inevitably arise at the interface of different systems of succession law, it is essential for English and Brazilian advisers to work together when crafting an estate plan. For example, English law generally allows individuals to divide their assets as they wish on death, in contrast to the forced heirship regimes that apply in many civil law jurisdictions such as Brazil.  Similarly, the concept of multiple matrimonial regimes is foreign to English law, and so any married Brazilians moving to the UK should take advice on the enforceability of their marriage contract in England.

Existing structures

A review of any existing structures is essential before moving to the UK. For example, care must be taken not to inadvertently change the tax residence of existing companies of which the individual is a director or otherwise involved in decision-making. (In some cases, moving corporate residence to the UK will be beneficial, as the UK’s corporation tax rules generally exempt holding companies from tax on dividends and disposals of trading businesses.)

Vehicles widely used by Brazilians such as Fundos de Investimento em Participação (FIPs) and limitatas present specific challenges. These vehicles can still be suitable for Brazilians living in the UK. Rather, the challenge is to align tax credits, because these entities’ classification for UK tax purposes (as transparent or opaque) is not always straightforward. 

Immigration

The UK’s immigration laws have changed significantly since the UK’s departure in 2020 from the European Union, and (in common with many other countries) migration policy continues to be politically sensitive. For example, the UK no longer has an investor visa, so it is not possible to acquire residence rights merely by virtue of making financial investments in the UK.  

It is generally easiest for individuals to move to the UK if they are working. Different visa categories exist for (i) skilled workers taking roles with UK employers (ii) workers at non-UK businesses establishing a UK branch or subsidiary (iii) entrepreneurs with a compelling business plan and (iv) leading individuals within certain fields.  

So, entrepreneurs with existing businesses are particularly well placed, as they can set up a branch or subsidiary in the UK or indeed relocate their business’s headquarters to the UK (for example, to take advantage of the UK’s corporation tax system and the exemptions it offers, as discussed above). Other options exist for individuals in different positions – with careful thought, an applicant’s chances of success can be maximised.

Other issues

Buying a home in the UK is likely to be a priority for new arrivers unless their time in the UK will have a short horizon. High-end financial property prices in London have declined in recent years, with some commentators noting that prices now are often comparable to those in 2015. Some of our clients are seeing this as a buying opportunity.

UK property taxation has changed significantly in the last decade, with the effect that personal ownership (rather than through a trust or corporate structure) will now almost invariably be most tax-efficient. Stamp duty land tax is payable on the purchase of property at a rate of up to 12%, with a 2% surcharge for non-residents – care is needed to avoid being treated as non‑resident for these purposes.

Individuals leaving the UK should be aware that income and gains deriving from UK real estate will continue to be subject to UK tax after they have left, and any UK residential property (however it is held) will continue to be subject to inheritance tax.

Care must also be taken when bringing personal possessions to the UK. When an individual moves their “normal residence” to the UK, complete relief from VAT and customs duty is generally available for most personal belongings they bring in, either on their person or separately, between six months before and 12 months after the individual’s arrival in the UK, but advice should be taken to ensure that the conditions are in fact met.

Brazilians already in the UK

For Brazilians already in the UK, there is no “one-size-fits-all” approach to planning: it will depend on their personal intentions, family arrangements, asset profile and the length of time they have already been in the UK. Many of the points above will still be relevant.

That said, there are some opportunities that will only exist for Brazilians already in the UK.

The most interesting of these is the new “temporary repatriation facility” (TRF), which is available until the end of the 2027/28 UK tax year. Individuals who have previously been taxed on the remittance basis are able to bring foreign income and gains (whether held personally or in trust) that arose before 6 April 2025 and pay tax at a flat rate of only 12% (rising to 15% in 2027/28). Without the TRF, a remittance of these funds would have been taxed at up to 47%. There are some technical traps which require careful advice, but the TRF still represents a generous opportunity for former non-doms to bring funds to the UK tax-efficiently.

Other transitional reliefs that the Government has made available include:

• the ability to rebase personally held assets to market value as at 6 April 2017; and
• exemptions from, and caps on, certain inheritance tax charges on assets held in trusts created before 30 October 2024.

Brazilians already in the UK should review their tax and estate planning position in light of these changes. In some cases, restructuring might enable them to take advantage of these transitional measures.