27/07/2026
SAFFAS IN THE UK: DO YOU KNOW OF THE "NON-DOM ABOLITION"? 🇿🇦🇬🇧
If you're South African who has settled in the UK in recent years, there's a change that deserves your attention; one with real implications for how your money is taxed on both sides.
For more than 200 years, the UK's "non-dom" status allowed residents whose permanent home was considered to be abroad to shelter their foreign income and gains from UK tax, provided that money stayed offshore. As of 6 April 2025, that regime no longer exists. UK Chancellor Rachel Reeves confirmed the government would abolish the non-dom tax regime, stating that everyone who makes their home in the UK should pay their taxes there.
In its place is a new residence-based system. Domicile no longer determines UK tax liability on foreign income; residency does. If you've been a non-UK resident for at least 10 consecutive years before arriving, you're given a four-year window in which foreign income and gains arising in a tax year are not subject to UK tax, regardless of whether those funds are bought into the UK. It's a generous transition, but it's temporary, not permanent. Once those four years end, you become liable for UK tax on your worldwide income and gains in the usual way.
The change extends beyond income tax, too. Non-UK property is now brought into the UK inheritance tax regime for long-term residents, ending the use of offshore trusts to shelter assets from inheritance tax once someone has been UK residents for long enough.
For South Africans who built up savings, investments, or trust structures at home or offshore under the assumption that non-dom status would offer indefinite protection, now is the right time to understand exactly where you stand - in the UK, and in South Africa. Overlook the UK side, and you may face full worldwide taxation sooner than expected. Leave your SA residency status unclear at the same time, and you risk double exposure rather than the protection you were hoping for.
If you're unsure which side of the four-year window you fall on, or what this means for your South African tax residency, we'd be glad to help you work through it.
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