Private Clients with UK & Dubai Connections

Your UK tax residence status is one of the most important factors in determining how much UK tax you pay. 

The UK applies a Statutory Residence Test (SRT) to determine whether an individual is UK tax resident in a particular tax year. This involves a series of tests, applied in order, covering: 

• Automatic overseas tests 

• Automatic residence tests 

• The sufficient ties test 

The sufficient ties test looks at both the number of days spent in the UK and your ongoing connections to the UK, such as family, accommodation, work and previous residence. The rules operate on a sliding scale and differ depending on your personal circumstances and history. 

These tests are complex and frequently misunderstood, particularly by those relying on outdated rules that applied before April 2013. Each individual’s position must be reviewed carefully to ensure the correct outcome. 

Although UK tax residence is generally assessed over a full tax year (6 April to 5 April), it may be possible to split a tax year into UK-resident and non-resident periods. 

There are eight specific split year cases, each with detailed conditions. Where available, split year treatment can significantly improve your tax position, but it requires careful planning and precise timing to ensure the conditions are met. 

• UK tax residents are generally taxed on their worldwide income and capital gains. 

• Non-UK tax residents are typically taxed only on UK-source income and certain UK source capital gains. 

In addition, individuals who leave the UK must usually remain non-resident for at least five complete tax years to avoid the temporary non-residence anti-avoidance rules. If these rules are triggered, certain income and gains realised while abroad can become taxable on a return to the UK. 

UK inheritance tax can be a significant concern for internationally mobile individuals. 

If you are considered long-term UK resident (broadly, UK resident for at least 10 of the previous 20 tax years), UK inheritance tax may apply to your worldwide estate, at a rate of 40% above the available nil-rate band. 

If you are not long-term UK resident, UK inheritance tax generally applies only to UK-situated assets. 

There is also a “tail” period after leaving the UK during which long-term residence can continue, depending on how long you were UK resident before departure. 

We advise on inheritance tax planning for internationally mobile families, including estate structuring, family ownership arrangements, and the appropriate use of insurance and other planning tools. 

Many non-UK residents continue to own or invest in UK property and other UK assets. 

We support clients with: 

• Ongoing compliance for UK rental properties 

• UK self-assessment tax returns 

• Making Tax Digital (MTD) requirements 

• Non-Resident Capital Gains Tax (NR-CGT) reporting 

• Non-Resident Landlord (NRL) obligations 

• Annual Tax on Enveloped Dwellings (ATED), where properties are held through corporate structures 

Our aim is to reduce the hassle for you and make the complicated simple.  By liaising with third parties on your behalf such as managing agents and other professional advisors we can make your life easier. 

Whether you are investing in UK property or UK businesses, the structure chosen at the outset can have long-term tax and commercial consequences. 

We provide advice on: 

• Optimal holding structures 

• Tax and financial due diligence 

• Acquisition planning 

• Ongoing UK compliance and reporting 

This support is particularly valuable for UAE-based investors navigating the UK tax system for the first time. 

Depending on your circumstances, you may still need to file UK tax returns even if you live overseas, for example, to declare residence status, UK income, or capital gains. 

We can: 

• Prepare and submit UK self-assessment tax returns 

• Act as your registered agent with HMRC 

• Deal directly with HMRC on your behalf 

• Manage Making Tax Digital obligations where required 

If you sell or transfer a UK property, a non-resident capital gains tax return must generally be filed within 60 days of completion, even where no tax is payable. 

If you are planning a return to the UK, obtaining advice in advance is crucial. 

Pre-arrival planning can help ensure: 

• Income and assets are structured efficiently 

• Unnecessary UK tax exposure is avoided 

• Opportunities under the new UK tax rules are not missed 

From 6 April 2025, the UK has introduced a new regime for internationally mobile individuals, known as the Foreign Income and Gains (FIG) regime. This can allow qualifying individuals to benefit from UK tax exemptions on certain foreign income and gains for the first four years of UK residence, provided specific conditions are met. 

We can also advise on SDLT implica