Does moving to Dubai end your UK tax residence?
Not by itself. UK tax residence is decided by the Statutory Residence Test, set out in Schedule 45 to the Finance Act 2013. HMRC's guidance on the test is RDR3, updated on 11 June 2026.
The test is applied to each tax year. The table sets what the UAE authorities publish beside what HMRC publishes.
| Point | What changes | What does not change |
|---|---|---|
| Personal tax | The UAE does not levy income tax on individuals | UK residence is still decided by the Statutory Residence Test |
| Company tax | A UAE company pays UAE corporate tax at 9% on taxable income above AED 375,000 | The company can be UK tax resident if central management and control is exercised in the UK |
| Bank reporting | Your accounts are held with UAE financial institutions | Account information is still exchanged, under the Common Reporting Standard |
| Coming back | The temporary non residence rules look at the length of the period abroad | Certain income and gains from the period abroad become taxable if you return after five years or less |
How does the Statutory Residence Test work?
The test works through automatic tests first, then a sufficient ties test where no automatic test applies.
Split year treatment can apply in the year you leave. These are the headline tests only: RDR3 contains further conditions and definitions.
| Test | Condition | Result |
|---|---|---|
| Automatic overseas test | You were previously UK resident and spend fewer than 16 days in the UK in the tax year | Non resident |
| Full time work overseas | You work full time overseas, spend fewer than 91 days in the UK and work more than 3 hours in the UK on fewer than 31 days | Non resident |
| Automatic UK test | You spend 183 days or more in the UK in the tax year | UK resident |
| Sufficient ties test | No automatic test applies. HMRC looks at family, accommodation, work and 90 day ties | Depends on your days and ties |
Can HMRC treat your Dubai company as UK resident?
HMRC's International Manual states that a company not incorporated in the UK can still be UK tax resident if its central management and control is exercised in the UK. HMRC treats this as a question of fact.
It follows that a Dubai license does not by itself settle where the company is tax resident. The question is where central management and control is exercised.
On the UAE side, the Ministry of Finance states that corporate tax applies to companies incorporated in the UAE or effectively managed and controlled there.
Is there a tax treaty between the UK and the UAE?
A UK and UAE Double Taxation Convention exists. It was signed on 12 April 2016 and entered into force on 25 December 2016, and it has been modified by the Multilateral Instrument.
On the UAE side, tax residence for individuals is defined in Cabinet Decision No. 85 of 2022, effective 1 March 2023. The Federal Tax Authority issues Tax Residency Certificates for treaty purposes. A company must have been established for at least 12 months before it can apply, and the fee is AED 50 on submission plus AED 500 for a corporate tax registrant.
Good to knowThe research behind this article confirmed that the convention exists, its dates and that the Multilateral Instrument modifies it. How its articles apply to you is a question for a tax adviser.
What happens if you return to the UK within five years?
The temporary non residence rules can apply. HMRC's guidance states that where the period abroad is five years or less, certain income and gains from that period become taxable on return.
For people who arrive in or return to the UK, the 4 year foreign income and gains regime replaced the remittance basis on 6 April 2025. It is available in the first 4 years of UK residence after at least 10 years of non residence.
What changes on the UAE side?
The UAE has its own tax system. It does not levy income tax on individuals. A UAE company pays corporate tax at 0% on taxable income up to AED 375,000 and 9% above it, and its tax return is due within 9 months of the end of the tax period.
UAE financial institutions report account information each year to the Ministry of Finance under the Common Reporting Standard, which has been live in the UAE since 1 January 2017. That information is exchanged with partner jurisdictions.
This article states what HMRC and the UAE authorities publish. It is not tax advice: confirm your own position with a qualified UK tax adviser before you move.