By Emma McDermott ATT, Founder of Global Tax Consulting
Dubai’s lack of personal income tax is one of the main attractions for British professionals considering a move to the UAE. Combined with the employment opportunities, lifestyle and relative proximity to the UK, it is easy to understand why so many people are making the move.
However, relocating to Dubai does not automatically mean that you stop paying UK tax.
I regularly speak to individuals who have arranged their UAE employment, accommodation and residence visas without first considering their UK tax position. The difficulty is that HMRC determines residence under UK legislation, regardless of whether you hold a UAE residence visa or Emirates ID.
The timing of your departure, how often you return to the UK and what happens to any property, pensions or investments you leave behind can all affect your tax position.
There are seven areas I would recommend reviewing before leaving. This article covers the UK tax position only; UAE-specific requirements should be discussed with a UAE adviser.
1. Establish when you become non-resident in the UK
The starting point is your residence status under the UK’s Statutory Residence Test (SRT).
This determines whether the UK can tax your worldwide income and gains or, as a non-resident, generally only income and gains that remain within the scope of UK taxation.
The SRT is applied separately to each tax year, which runs from 6 April to 5 April. There are three main routes to automatic non-residence:
- Fewer than 16 UK days: If you were UK resident in at least one of the previous three tax years, you will generally be automatically non-resident if you spend fewer than 16 days in the UK.
- Fewer than 46 UK days: If you were non-resident in all three preceding tax years, you will generally be automatically non-resident if you spend fewer than 46 days in the UK.
- Full-time work abroad: You can also qualify by working sufficient hours overseas, broadly averaging at least 35 hours per week, without a significant break. You must spend fewer than 91 days in the UK and perform no more than 30 UK workdays.
For individuals relocating to Dubai for employment, the full-time work abroad test is often the most relevant.
If none of the automatic tests applies, your residence status may instead depend on the number of days you spend in the UK and the ties you retain.
These can include having a spouse or minor children living in the UK, accommodation available to you, UK employment duties or a history of spending substantial time in the country.
The more ties you retain, the fewer UK days you may be permitted before becoming resident.
For example, Sarah accepts a job in Dubai in July, but her husband and children remain in their family home in Surrey until the following summer. She retains family and accommodation ties with the UK and may have a 90-day tie from previous years.
If Sarah satisfies the full-time work abroad test, she can still qualify as non-resident despite those connections. However, if she does not meet that test, the number of days she spends visiting her family could determine whether she remains UK resident.
I recommend establishing which residence test you intend to satisfy before relocating, particularly where family members or a home will remain in the UK.
2. Consider split-year treatment in the year you leave
The next question is how the UK will tax you during your departure year.
Under the normal residence rules, an individual who is UK resident for a tax year is generally subject to UK tax on their worldwide income for that year. However, split-year treatment can divide the departure year into a UK-resident part and an overseas part.
During the overseas part, foreign employment income will generally fall outside UK taxation, although UK-source income may remain taxable.
There are several circumstances where split-year treatment can apply. Two of the most relevant for people moving to Dubai are:
Case 1: Starting full-time work overseas
This applies where an individual starts working full-time abroad and satisfies the relevant overseas working conditions. The permitted UK days and UK workdays during the remainder of the departure year are reduced depending on when overseas work begins. The individual must also qualify under the full-time work abroad test for the following tax year.
Case 3: Ceasing to have a home in the UK
This may apply where an individual stops having a UK home and moves overseas. Broadly, the individual must cease having any UK home for the remainder of the tax year, spend fewer than 16 days in the UK after that point and satisfy one of the specified overseas residence, presence or home conditions within six months. They must also be non-resident in the following tax year.
Split-year treatment is not optional. It applies where the relevant statutory conditions are satisfied.
3. Check your UAE residence position under the tax treaty
Becoming non-resident in the UK is only one part of the tax position.
The UK and UAE have a double taxation agreement that determines which country has taxing rights over certain types of income, including employment earnings and pensions. To benefit from the agreement, you must qualify as a UAE resident for treaty purposes.
Article 4 of the agreement considers whether an individual is domiciled in the UAE under its laws or has their habitual abode or centre of vital interests there. This is different from simply holding a residence visa.
In practice, individuals claiming treaty relief from UK tax may need to obtain a Tax Residency Certificate from the UAE Federal Tax Authority (FTA). The FTA generally looks for at least 183 days of presence in the UAE within the 12-month period the certificate covers.
This certificate requirement should be distinguished from the residence definition in the treaty itself.
Global Tax Consulting’s guide to moving to the UAE from the UK covers the certificate and treaty residence in more detail.
For someone planning to divide their time between Dubai, the UK and other countries, obtaining the necessary evidence of UAE residence can therefore require some planning.
The position becomes more complicated where both countries consider the individual resident.
In those circumstances, Article 4 provides a series of tests looking at where the individual has a permanent home, where their personal and economic connections are strongest, where they habitually live and, if still unresolved, their nationality.
For example, someone retaining a family home in the UK while renting an apartment in Dubai may have a permanent home available in both countries. Their wider circumstances would then need to be considered.
4. Plan your visits back to the UK
Moving to Dubai does not mean you need to stop visiting the UK. However, it is worth deciding in advance how much time you expect to spend there, particularly where your family, employer or business interests remain in Britain.
For UK residence purposes, a day is generally counted where you are present in the UK at midnight, subject to certain exceptions.
A UK workday is generally any day on which you perform more than three hours of work while physically in the UK. This includes working remotely, attending client meetings or spending time at a UK office. The distinction matters because someone can remain within the permitted UK day limit but exceed the separate workday limit.
Employment income also needs to be considered. Once you are non-resident, the UK can generally tax the part of your salary attributable to employment duties physically performed in the UK. The UK–UAE treaty may exempt earnings from short visits where certain conditions are met, including limits on UK presence and requirements concerning the employer. However, where the employment is with a UK-resident employer, that exemption will not be available.
I recommend keeping a record of every UK visit, the number of days spent in the country and any employment duties performed while there. These records can be important if HMRC subsequently asks you to support your non-resident status or employment income calculation.
- Decide what to do with your UK propertyMany people moving to Dubai retain their UK home, either because they intend to return eventually or because they wish to rent it out. This can be a sensible arrangement, but there are several tax implications.Retaining your family home
If the property remains available for your personal use, it may create an accommodation tie under the Statutory Residence Test. It can also prevent you from qualifying for Case 3 split-year treatment.
Letting the property to tenants under an arrangement that removes your ability to use it may change the residence position.
Receiving UK rental income
UK rental income remains taxable in the UK even after you become non-resident.
Under the Non-Resident Landlord Scheme, letting agents, or tenants in certain circumstances, are normally required to deduct basic rate tax from rental payments. However, you can apply to HMRC using form NRL1 for approval to receive the rent without tax being deducted.
This does not make the rental income exempt. You must still establish your UK tax liability and complete a Self Assessment return where required.
Selling your UK property
Non-residents remain subject to UK Capital Gains Tax on disposals of UK property.
Residential property gains are generally taxed at 18% or 24%, depending on the applicable tax band.
Where you owned a residential property on 5 April 2015, the gain may be calculated using its market value on that date, rather than the original purchase price.
Private Residence Relief may also reduce the liability where the property was previously your main home, although additional conditions can apply during periods of overseas residence.
Importantly, non-residents are generally required to report UK property disposals within 60 days of completion, even where no Capital Gains Tax is payable.
For homeowners considering whether to sell before or after moving to Dubai, it is worth reviewing the Capital Gains Tax calculation alongside the expected departure date.
6. Review your pensions, savings and investments
The treatment of income and investments you retain in the UK can change once you become non-resident.
UK pensions
Under Article 17 of the UK–UAE double taxation agreement, private and occupational pensions paid to a qualifying UAE treaty resident are generally taxable only in the UAE.
As the UAE does not impose personal income tax on ordinary pension income, this can produce a significant tax saving. However, the relief is not automatic.
Where UK PAYE continues to be deducted, you can apply to HMRC using form DT-Individual for treaty relief and, where appropriate, an NT tax code. The application requires evidence of UAE treaty residence, including a Tax Residency Certificate.
Government service pensions are treated differently under Article 18 and will generally remain taxable in the UK, subject to the treaty’s exceptions.
The UK State Pension is another consideration. Although it can be paid while living in the UAE, it does not normally receive annual increases while the pensioner remains resident there.
Savings and investments
UK interest and dividends received during a full tax year of non-residence may benefit from the disregarded income rules, which limit the UK income tax liability on certain investment income.
As UK dividends are not normally subject to withholding tax, they can often be received without additional UK income tax. The overall calculation should nevertheless be considered, particularly where other UK income is received.
Capital gains realised on ordinary shares and investments are also generally outside UK Capital Gains Tax once you become non-resident, subject to certain exceptions.
The five-year temporary non-residence rule
There is one further consideration for individuals who plan to return to the UK.
Broadly, where you were UK resident for at least four of the seven tax years before departure and your qualifying period of non-residence lasts five years or less, certain income and gains realised overseas can become taxable in the year you return.
This can affect gains on investments owned before departure, qualifying dividends from owner-managed companies and certain large pension withdrawals.
For example, an individual who sells a substantial shareholding while living in Dubai will initially have no UK Capital Gains Tax liability. However, if they return to the UK within the temporary non-residence period, that gain could become taxable on their return.
It is therefore worth considering your longer-term plans before making significant investment disposals or pension withdrawals.
7. Notify HMRC of your departure
The final step is ensuring that HMRC is informed of your move.
If you are leaving the UK and do not normally complete a Self Assessment tax return, you may be able to notify HMRC using form P85.
Where you complete a Self Assessment return, your residence status and any applicable split-year treatment are normally reported on the SA109 supplementary pages.
For someone leaving during the 2026/27 tax year, the online Self Assessment filing deadline is 31 January 2028.
HMRC’s standard online filing service does not support the SA109 residence pages, so you will need compatible commercial software, a tax adviser or a paper return. Paper returns for 2026/27 must be filed by 31 October 2027.
Notifying HMRC is only part of the process. You should also maintain records of your travel dates, overseas employment, UK workdays and changes to your personal circumstances. These will help support your tax position if it is reviewed in future.
Before you move to Dubai
The most useful approach is to review your UK tax position before making the move, rather than treating it as something to deal with once you have settled in Dubai.
There are a few decisions worth making in advance:
- Establish which Statutory Residence Test rule you expect to satisfy and whether split-year treatment will apply.
- Consider the timing of your departure and the residence conditions you must meet in the following tax year.
- Review your UAE residence position and the evidence required for treaty relief.
- Plan the number of days you expect to spend working or visiting the UK.
- Decide whether to retain, rent or sell your UK property.
- Review how your UK pensions, dividends and investments will be taxed.
- Consider whether you may return to the UK within five years, particularly before making large pension withdrawals or selling investments.
- Ensure your departure is correctly reported to HMRC.
Dubai offers significant personal tax advantages, but these depend on establishing the correct residence position and understanding which UK tax obligations continue after departure.
For those retaining financial or family connections to the UK, getting these arrangements right before leaving will make the position much easier to manage in the years that follow.
Further information is available in Global Tax Consulting’s leaving the UK tax guide. If you would like your own position reviewed before you go, see how we help people leaving the UK.
About the author
Emma McDermott ATT is the Founder of Global Tax Consulting, a UK tax advisory firm specialising in expats and digital nomads. She previously worked at Deloitte and has been a member of the Association of Taxation Technicians since 2020. Her work focuses on UK residence, cross-border employment income, pensions and the tax implications of leaving or returning to the UK.
Also published on Medium.
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