Moving to Dubai from the UK

Thousands of British professionals and business owners move to Dubai every year. The UAE does not tax personal income, but leaving the UK tax net takes planning. The order in which you do things, and the ties you keep, decide when HMRC stops taxing you.

At a glance

• Tax treaty: the UK and the UAE have a double tax agreement, which helps if you are treated as resident in both countries.
• Leaving: your UK status is decided by the statutory residence test, which counts days and ties such as family, accommodation and work.
• Year of departure: split-year treatment can let your UK residence end part-way through a tax year, if you meet its conditions.
• Inheritance tax: since 6 April 2025, UK inheritance tax follows long-term residence, not domicile.
• UK assets: UK property and other UK assets stay within UK tax wherever you live.

Leaving the UK: what to get right

The statutory residence test looks at how many days you spend in the UK and how many ties you keep. Someone who keeps a home available in the UK, family in UK schools or regular UK workdays can stay UK resident even after moving. Plan your visits, your accommodation and your work pattern for the first years, and keep evidence of your life in Dubai.

If you return to the UK within five years, certain gains and income received while you were away can be taxed when you come back. Selling shares or taking large dividends shortly after leaving needs particular care.

Inheritance tax after April 2025

UK inheritance tax now applies to your worldwide assets if you were UK resident in at least 10 of the previous 20 tax years. After you leave, that exposure continues for a period of between 3 and 10 years, depending on how long you lived in the UK. Knowing the date your exposure ends is now central to estate planning for British expats. Read our UK inheritance tax page for more.

Your UK company

A company is UK resident if its central management and control stays in the UK. If you move to Dubai but board decisions are still made in the UK, the company remains taxable there. Many founders set up a new UAE company with real decision-making in Dubai, and decide separately what to do with the UK entity.

How Imperial Group helps

• A review of your residence position before you move, so you know when your home-country tax exposure actually ends
• The right UAE structure for your business: free zone, mainland or a holding company, with real substance
• Company setup, visas, Emirates ID and bank account opening support
• UAE tax residency certificate, corporate tax and VAT registrations from day one
• Ongoing accounting, tax filings and a single point of contact for everything in the UAE

Sources

• HMRC: Statutory residence test (RDR3)
• ACCA: The end of non-domicile status
• UAE double tax agreement network overview

This page gives general information as at the date shown and is not advice for your specific situation. Rules in other countries are summarised for orientation; your home-country position should be confirmed before you act.