19 NOVEMBER 2025
According to The Times, 10,800 millionaires left the UK in 2024, citing high taxation as a primary reason. Here we break down the Top 5 tax and financial considerations for expats who have left the UK for Dubai or other jurisdictions.
Tax Considerations
1. Becoming a non-UK resident
The Statutory Residence Test (SRT) determines whether those seeking to become non-UK resident remain subject to UK taxes after moving abroad. There are many considerations to take into account, and in particular there a couple of areas of the SRT which often catch people out, where we would recommend taking advice, for example:
2. Exiting the UK Tax System: CGT and Income Tax implications
There is a common misconception that people can move abroad for a couple of years and then return, without tax consequences. However, the devil is in the detail.
Temporary non-residence rules can, upon your return to the UK, trigger both income and capital gains tax on actions taken whilst living overseas.
To avoid UK CGT or income tax on certain assets/receipts on a return to the UK, individuals must be non-UK residents for at least five years and one day, which means some people actually need to be non-resident for six tax years. The rules catch a variety of income and gains, potentially including gains or distributions from an entrepreneurs’ company, life insurance chargeable event gains, certain pension income and more.
For expats who are planning to leave for a few years, selling your company or taking distributions from your company abroad may not achieve the outcome you desire. It’s worth seeking tax advice from your destination country that supports tax advice received from leaving the UK. This often means connecting your advisers in each jurisdiction to talk to each other to ensure they provide the best solution.
3. The New UK Long-Term Residence Regime
The UK government is replacing the concept of domicile with the concept of Long-Term Residence, which significantly affects individuals both leaving and returning to the UK. Read our related article here.
Under the new system, the key changes to be aware of are:
For expats who have just left the UK, these points may be more of a concern in the future, but they could determine how long you wish to remain non-UK resident.
Other Considerations
4. Financial & Pension Goals
Relocation presents an opportunity to reconsider your wider finances and align goals that work with your lifestyle and long-term plans.
For example, for those moving to Dubai, UK pensions are an important consideration. Under the UK–UAE tax treaty, most private pensions can be paid without UK tax, provided the correct residency and HMRC forms are in place. This makes them a valuable source of retirement income for expats. However, government service pensions are treated differently and may remain taxable in the UK.
It’s also worth noting that from 2027 unused UK pensions will start to fall into the scope of UK Inheritance Tax, which could affect how you structure wealth for your family.
Alongside pensions, broader planning is essential. Good cash flow planning ensures you have the right balance between liquid assets for near-term needs, such as property purchases, school fees or healthcare, and longer-term investments to support retirement. Building a wider financial plan helps keep everything connected – clarifying why you are moving, what you want to achieve, and how pensions, investments and lifestyle goals fit together.
5. Investment Considerations
Where to Hold Assets
Where to custody assets is a key consideration when relocating to ensure investments are held in a tax-efficient way. We often recommend expats moving to say, Dubai or elsewhere in the Middle East, to hold their banking and custody accounts in a neutral third country rather than in their new country of residence.
Choosing the Right Investment Structures
Your investment strategy should be tailored to your personal circumstances and individual needs.
Expats relocating to other countries should consider exploring the following:
6. Conclusion
Relocating abroad creates a perfect opportunity to asses your financial goals and look to create a long-term holistic wealth management strategy. Careful structuring, to avoid unexpected tax liabilities and ensure financial security, is paramount.
Engaging with an advisor, to help develop a personalised relocation plan can help ensure a structured, tax-efficient transition, and ultimately guide you through the complexities of cross-border wealth planning.
At Bentley Reid, we offer comprehensive UK tax, financial planning and investment advice and recommend seeking professional legal advice (and external tax advice where required which we can help coordinate) before making any decisions.
Sources:
Prepared by Bentley Reid & Co. (UK) Limited (authorised and regulated by the Financial Conduct Authority) and by Bentley Reid & Company Limited (licenced by the SFC in Hong Kong). Distributed in the DIFC by Bentley Reid (DIFC) Ltd, a Category 4 firm authorised and regulated by the Dubai Financial Services Authority (DFSA) and licensed to provide services to Retail and Professional Clients.
The content of this communication is for information purposes only. Bentley Reid believes that, at the time of publication, the views expressed and opinions given are correct but cannot guarantee this and viewers intending to take action based upon the content of this communication should first consult with the professional who advises them on their financial affairs. The legal frameworks under which these comments are made can change over time. Tax treatment can vary depending on the location of the individual or their assets. Neither the publisher nor any of its subsidiaries or connected parties accepts responsibility for any direct or indirect loss suffered by a recipient as a result of any action or inaction, in reliance upon the content of this communication.
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