Earlier this month, a top-ranked chess grandmaster visited LEXeFISCAL LLP to explore how the UK’s new Foreign Income and Gains (FIG) tax regime could be a game-changer for his financial future.
As an internationally recognised chess player, he spends his time travelling the globe, competing in tournaments both on-board and online. With numerous sponsors backing his career but no agent, he manages his income independently. Now, based in France, he sought our advice on how the FIG regime could allow him to manage his international income more efficiently.
What is the FIG Tax Regime?
The FIG regime, recently introduced in the UK and will be implemented from the tax year starting on 7 April 2025, is designed to attract high earners with substantial foreign income who are considering making the UK their tax residence. It offers a distinct advantage to those with earnings from abroad—allowing them to structure their finances in a way that reduces their tax liabilities.
For international professionals like our chess grandmaster, the FIG regime can provide significant benefits by allowing individuals to be taxed only on their UK-sourced income. Any foreign income or gains can remain untaxed in the UK, provided they are not remitted (i.e., brought into the UK). This is particularly beneficial for individuals earning globally while spending time in the UK, as they can still enjoy the UK’s infrastructure without facing heavy taxes on income generated overseas.
How FIG Can Work for You
The grandmaster’s situation is a perfect example of how the FIG regime can benefit those with a global income. By establishing his tax residence in the UK under FIG, he could continue to receive sponsorship payments from foreign entities and participate in international competitions without those earnings being taxed by HMRC, as long as the funds stay outside the UK.
For professionals like him, whether you’re an athlete, artist, or entrepreneur, FIG offers a chance to enjoy the UK's vibrant business environment without the burden of paying tax on worldwide income. This becomes especially important for high-earners who want to maintain a presence in the UK while ensuring that income generated abroad is treated favourably.
Strategic Residency Moves
The FIG regime also opens up options for residency. While the grandmaster is currently based in France, relocating to the UK could unlock a range of tax efficiencies under this regime. However, as with any cross-border financial decision, careful planning is essential. For instance, if he chooses to move his tax residency from France to the UK, there may be potential risks under the double taxation agreement, which could need to be mitigated.
Additionally, for those who may want to remain in the UK but also retain flexibility, it’s possible to establish a tax-efficient structure elsewhere—such as in a low-tax jurisdiction like the Isle of Man or Malta—while still benefiting from the UK’s FIG regime.
FIG: A Financial Checkmate
For international earners like our chess grandmaster, the FIG regime provides an excellent opportunity to balance tax obligations across borders. Whether you're a professional in the sporting world, the arts, or business, FIG gives you the freedom to focus on what you do best—without being held back by complex international tax systems.
At LEXeFISCAL LLP, we are committed to helping individuals like this chess master maximise the benefits of regimes like FIG while ensuring their financial strategy remains strong and sustainable. With the right moves, the FIG regime could be your financial checkmate.
Get in touch with us today:
Dr Clifford John Frank
LLM (Tax), HDIpICA, PhD, CPA
Senior Partner
Mr Angelo Chirulli
Master’s Degree, ACA, ADIT, BFP
Tax Partner
Email: angelo@lexefiscal.com
Telephone
+44 (0) 208 092 2111
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