UK Tax Specialists for Dubai Residents
Expert UK tax advice for non-residents living in the UAE
Living in Dubai or Abu Dhabi offers a wealth of opportunities—and with no local income tax, it’s an appealing prospect for many Brits. But while the UAE may be tax-free, your obligations to HMRC don’t necessarily disappear when you move abroad.
At Taxset Chartered Certified Accountants, we specialise in UK tax for non-residents and expats in the UAE, helping you navigate complex cross-border regulations with clarity and confidence.
UK Tax & Double Taxation Agreements
The UK has a double taxation agreement with the UAE, which prevents you from being taxed twice on the same income. However, understanding how it applies to your personal and business circumstances is crucial. Even if you already have an accountant in Dubai, they may lack the detailed UK tax knowledge required. Our UK-based chartered accountants can help you:
- Determine your UK residency status
- Minimise exposure to UK tax
- Comply with UK tax return requirements
- Avoid penalties and double taxation
What Non-Residents Need to Know?
- You may still owe UK tax
Being a UK non-resident doesn’t automatically exempt you from UK tax. You’re still liable for tax on UK-sourced income such as:
- Rental income from UK properties
- UK-based employment or business income
- Private pensions
- Dividends or capital gains from UK assets
- Personal Allowance still applies
If you hold a British passport, you can usually claim the UK Personal Allowance—currently £12,570 per tax year—before paying tax. Alternatively, you may choose to be taxed on a “disregarded income” basis, which could reduce your overall UK tax liability on certain income streams.
- Capital Gains Tax (CGT)
If you’ve been non-resident for five full tax years or more, you’re typically exempt from CGT—except when selling UK land, property, or assets used in a UK trade. Non-residents must still report and pay any CGT on UK property sales within 30 days of completion.
- Inheritance Tax (IHT)
UK inheritance tax applies regardless of your residency. Estates worth over £325,000 are subject to 40% IHT, though exemptions and additional nil-rate bands (e.g. for passing on a home to children) may apply. Our experts will help you structure your estate effectively.
Property Owners & Landlords
If you’re letting a UK property while living in Dubai, the rental income remains taxable by HMRC. By joining the Non-Resident Landlord Scheme (NRLS), you can receive your rent without tax deducted at source and manage your own payments through a self-assessment tax return.
Planning to buy property in the UK while living abroad? You’ll still be liable for Stamp Duty Land Tax (SDLT), including the 2% surcharge for non-resident buyers.
Pensions & Employment Income
- Private pensions: Generally not taxable in the UK if you’re contributing from a Dubai salary.
- State pensions: Tax-free for non-residents, but payments are frozen at the level you start receiving them.
- Returning to the UK: We can advise on the tax implications of resuming UK residency, including treatment of overseas earnings and assets.
- UK working days: If your employment includes UK-based workdays, you may be taxed on that income. We’ll help clarify what’s considered a UK workday and how to report it.
Why Choose Taxset Chartered Certified Accountants?
We offer a dedicated, joined-up approach to UK tax for Dubai residents:
- Specialists in non-resident UK tax
- In-depth knowledge of HMRC rules and residency status
- Advice tailored to your personal and business circumstances
- Full accountancy services including VAT, payroll, and software like Xero
- Transparent, proactive support for UK expats abroad
Let’s Get Your UK Tax Sorted!
Wherever you are in the UAE, we’re here to support your UK tax and financial compliance.
Book a consultation with our expert team today and take the uncertainty out of your tax affairs.