Expat travel: Staying vigilant to UK tax risk when visiting from Dubai

The last couple of months have been full of uncertainty for many UK expats living in Dubai and elsewhere in the Middle East. As a result, a significant number of people have returned to the UK on a temporary or unplanned basis, often assuming that a short stay won’t affect their tax position. Unfortunately, that isn’t always the case.

UK tax residency is not determined by intention. It’s driven by days spent in the UK and your connections (or “ties”) to the UK. Even a temporary return can create unexpected tax exposure if it isn’t carefully managed.

Key risks

You may become UK tax resident sooner than expected
Having family in the UK, working while you’re here or exceeding UK day limits can tip the balance.

Income and gains you thought were outside the UK tax net may become taxable
This can include overseas salary, investment income, dividends, crypto gains and property disposals.

Earlier tax years can be affected
Returning to the UK may mean you didn’t qualify for split year treatment in the tax year that you left, potentially pulling earlier income back into UK tax.

Impact of temporary non-residence rules
Certain gains and income received in the last five years could become taxable again if you re-establish UK residence.

Structures put in place overseas may now be at risk
If a UAE company is effectively run from the UK, it could be brought into the UK tax net.

Given the timing of the end of the tax year on 5 April 2026, even if you are now returning to the Middle East, there could still be substantial risks.

What to do now

If you’ve returned to the UK unexpectedly, have been abroad for fewer than five years, or are unsure how your tax position is affected, have a chat with one of BKL’s international private client team.

We can help you to understand your residency position, manage the risks and put the right steps in place.