Your UK tax position often comes down to whether you’re UK resident under the Statutory Residence Test.

HMRC looks at this in layers:

1) Do you meet an Automatic Overseas Test?

2) If not, do you meet an Automatic UK Test?

3) If neither applies, what does the Sufficient Ties Test say?

For many UAE expats, the most common route to non-residence is the Third Automatic Overseas Test: full-time working overseas.

You may meet this if you:

• work full-time overseas (on average 35 hours a week),

• spend fewer than 91 days in the UK in the tax year, and

• have fewer than 31 UK work days (a “work day” is typically more than 3 hours of work).

The Statutory Residence Tests aren’t to be under estimated. They are complex..

If you’re not 100% sure on your position, we urge you to reach out to us. We’ll walk you through it properly, because getting this wrong can get expensive fast…

The UK has a Double Taxation Convention with the UAE. This helps determine which country gets taxing rights on different types of income, and is designed to prevent the same income being taxed twice. Treaties are useful, but they don’t automatically “sort it all out” for you. The details depend on your income types and your circumstances.

The standard UK Personal Allowance is £12,570.

If you live abroad, you may need to claim your Personal Allowance rather than assuming it’s automatically applied.

We’ll check whether you’re entitled, and whether it’s actually the most tax-efficient route for you.

Some UK investment income can fall under the UK’s “disregarded income” rules for non-residents.

In some situations, your UK tax on those sources may be limited to tax already deducted at source (which can be nil), but it’s fact-specific and needs checking.

Renting out your UK property

If you’re abroad and rent out UK property, UK tax still applies.

You may want to look at the Non-Resident Landlord Scheme. If approved, rent can be paid without withholding UK tax at source (you still report the income properly).

Selling UK property (Capital Gains Tax)

If you’re not UK resident, you must report disposals of UK property or land even if:

• there’s no tax to pay, or

• you made a loss.

Deadlines matter:

• 60 days to report and pay CGT on UK residential property (based on completion date rules).

Buying a UK property while you’re abroad

You can still buy, but you may face Stamp Duty Land Tax at additional rates depending on circumstances. We’ll flag what applies before you commit

• You can usually receive your UK State Pension while living abroad, but in some countries it may not increase each year.

• Private pensions can be taxed differently depending on the type of pension and treaty position. We’ll help you avoid nasty surprises and double taxation.

UK Inheritance Tax is usually charged at 40% on the value of an estate above the nil-rate band.

Key thresholds:

• Nil-rate band: £325,000

• Residence nil-rate band: up to £175,000 (only where a main residence is left to a direct descendant, and it can reduce for larger estates)

Even if you live abroad, UK assets (like UK property) can still be in scope for UK IHT.

The big point for UAE expats: the new “long-term residence” approach

HMRC now looks much more at how long you’ve been UK tax resident, because that can determine whether the UK can charge IHT on your worldwide assets (not just UK assets).

In high-level terms:

• If you’re classed as a long-term UK resident, the UK can potentially charge IHT on your worldwide estate. That includes overseas property, overseas investments, bank accounts, and more, as well as anything you still own in the UK.

• You can be treated as long-term UK resident if you’ve been UK tax resident:

  • for the previous 10 consecutive tax years, or

  • for 10 years or more in total within the previous 20 tax years.

So if you’ve only recently moved to the UAE, it’s worth checking whether you’re still inside the “long-term residence” window, because it could mean UK IHT exposure continues on your worldwide assets, not just your UK ones.