Life in the UAE makes it easy to put planning off. There is no personal income tax, salaries are paid in a currency pegged to the US dollar, and home can feel a long way away. Then a job changes, a child reaches secondary school or a parent needs care, and the move happens within months. The families who leave in the best shape are the ones who started thinking about it a year or more ahead.
1. Get the timing of your tax residence right
The country you move to decides when you become tax resident there, and what it taxes from that point. The UAE does not tax your personal income, but your next home almost certainly will.
For people returning to the UK, residence is decided by the Statutory Residence Test, and in the year you arrive split-year treatment may apply if you meet one of HMRC’s qualifying cases. Decide what to sell, restructure or crystallise while you are still non-resident, and do it with advice.
2. Understand where your estate will be taxed
Since 6 April 2025, UK inheritance tax has depended on residence rather than domicile. Someone who has been UK resident for at least 10 of the previous 20 tax years is a “long-term resident”, and their worldwide assets fall within UK inheritance tax. That status follows you for between three and ten years after you leave.
The decisions made in the final 12 months before departure often matter more than the years spent here.
3. Collect your end-of-service benefits, then decide what they are for
In the UAE private sector, once you have completed a year’s service, the gratuity is 21 days of basic salary for each of your first five years and 30 days for each year after, capped at two years’ total wages. Decide in advance whether it is for a house deposit, a pension, school fees or a cash buffer.
4. Close out your UAE finances properly
Settle loans and credit cards before you go. Unpaid debts in the UAE can lead to legal action and, in some cases, a travel ban. Keep one account open until your final salary and gratuity have been paid, then close it formally.
5. Update your will and your protection
If you will keep any assets in the UAE, a UAE-registered will still matters. Check your protection too: there is often a gap between the end of UAE health cover and the start of cover at home.
This article is for general information only and is not advice. Tax rules change and depend on your circumstances; take personalised advice before acting.
