Returning to the UK After Living in the UAE
This guide provides an overview of the key financial and practical considerations for expats planning to return to the UK
Repatriation can be an exciting step, but returning home may also create tax, pension, banking and property challenges if planning begins too late. Understanding how UK tax residence works, how overseas income and assets are treated, and how financial arrangements may change is essential for a smooth transition.
This guide highlights some of the most important areas to review before moving back to the UK. It is intended for general information only and should not be treated as personal financial or tax advice.
Last reviewed: March 2026 | Tax rules referenced: 2025/26 unless otherwise stated
Table of Contents
Preparing Financially Before Returning to the UK
Should you sell assets before repatriating?
In some cases, disposing of certain assets before becoming UK tax resident again may improve your tax position. However, this is not automatic. Temporary non-residence rules, the type of asset involved, the timing of the disposal and your wider income position can all affect the outcome.
Professional advice is essential before making significant financial decisions.
If assets cannot be sold before returning, tax planning strategies may still reduce potential liabilities once UK tax residence resumes. For example, the availability of the UK’s Foreign Income and Gains (FIG) regime may affect how overseas income and gains are taxed in the early years after returning.
Everyone’s circumstances are different. Repatriating may not be as complex for you as long as you take good financial advice from a professional.
Pension Planning When Returning to the UK
Retiring back to Britain
If you are already drawing benefits from a UK pension, international SIPP or QROPS, the tax treatment of those withdrawals may change once you become UK tax resident again.
Pension withdrawals, tax-free cash planning, offshore bond withdrawals and the sequencing of income from different investment structures should all be reviewed before returning.
For example, planning strategies may include:
- Drawing down a portion from the tax-free Pension Commencement Lump Sum (PCLS) to minimise taxable income.
- Utilising tax-deferred withdrawals, such as the 5% annual withdrawal allowance from an offshore bond.
- Using the Capital Gains Tax (CGT) annual exempt amount, which is £3,000 for the 2024–2025 tax year.
- Transferring assets between spouses, particularly if one spouse is a higher or additional rate taxpayer while the other is in a lower tax bracket.
Pension arrangements used while living abroad may require review once UK tax residence resumes. Structures such as SIPPs, QROPS and offshore investments can all play a role in retirement planning depending on the individual’s circumstances.
Failing to review these arrangements before returning could limit planning options and result in avoidable tax liabilities.
Professional advice should always be sought before making pension or investment decisions.
UK Tax Rules When You Return
Foreign income and gains
From 6th April 2025, the UK moved to a residence-based regime for foreign income and gains.
Individuals who return to the UK may be able to claim the 4-year Foreign Income and Gains (FIG) regime if they have not been UK tax resident in any of the 10 consecutive tax years prior to their return.
Where available, this regime can provide relief on qualifying foreign income and gains for up to four tax years after returning to the UK. Claims must be made for each relevant tax year.
UK-source income and gains remain fully taxable.
You will need to seek professional advice as your tax position is complex.
UK Tax Changes: How the FIG Regime Impacts British UAE Expats
Because the rules are complex and depend on personal residence history, professional advice should be sought before returning.
Income Tax
While living abroad as a non-UK resident, individuals are generally taxed only on UK-source income, such as rental income from UK property.
Once UK tax residence resumes, worldwide income may become taxable depending on the individual’s circumstances and whether the FIG regime applies.
In some situations split-year treatment may apply, meaning that the tax year of arrival may be divided between non-resident and resident periods. However, this treatment applies only where specific statutory conditions are met.
If you return to employment in the UK and do not have a valid P45, your employer may ask you to complete a Starter Checklist so PAYE can be applied correctly
National Insurance
To qualify for UK state benefits, including the State Pension, individuals must have sufficient National Insurance contributions.
You can:
- Check your NI record online.
- Make voluntary contributions to fill gaps in your payment history.
NI contributions vary based on employment status and earnings:
- Class 1: Paid by employed individuals.
- Class 2 & Class 4: Paid by the self-employed, with contributions ceasing at state pension age.
To receive the full new state pension, you typically need 35 years of NI contributions, although this can vary depending on your age and contribution history. Check here for more information.
You can normally make voluntary contributions for the previous six tax years.
For the 2025–2026 tax year, voluntary contribution rates are:
Class 2: £3.50 per week
Class 3: £17.75 per week
From 6 April 2026, voluntary Class 2 contributions for periods abroad are expected to be withdrawn, leaving Class 3 contributions as the primary voluntary option.
Capital Gains Tax (CGT)
Capital Gains Tax may apply when selling assets such as investments or property.
The annual CGT exemption is £3,000 per individual.
For disposals from 6 April 2025, CGT rates for individuals are generally:
18% on gains from most chargeable assets
24% on gains from residential property
32% on carried interest
Planning considerations may include:
Timing asset disposals before returning to UK tax residence
Using the CGT exemption
Transferring assets between spouses where appropriate
Temporary non-residence rules may apply if an individual returns to the UK within a specified period after leaving. In some cases, gains realised during a period of non-residence may still be taxable upon return.
Professional advice is essential before disposing of assets.
Inheritance Tax (IHT)
From 6 April 2025, UK inheritance tax rules moved towards a residence-based system rather than relying primarily on domicile.
Individuals who have been UK tax resident for at least 10 of the previous 20 tax years may be treated as long-term UK residents and subject to inheritance tax on their worldwide assets.
Once within scope, exposure to UK inheritance tax may continue for a number of years after leaving the UK, depending on how long the individual had previously been resident.
Current inheritance tax thresholds
Nil-rate band: £325,000
Residence nil-rate band: £175,000 for qualifying property passed to direct descendants
Unused allowances can usually be transferred to a surviving spouse or civil partner, potentially allowing estates of up to £1 million to pass free of inheritance tax.
Amounts above the available thresholds are typically taxed at 40%.
These thresholds are currently frozen until the 2029–2030 tax year.
Consulting a qualified financial adviser is essential to ensure your estate is structured efficiently and makes full use of available reliefs and exemptions.
Potentially Exempt Transfers (PETs)
A Potentially Exempt Transfer (PET) is a gift made during a person’s lifetime that may become exempt from inheritance tax if the donor survives for seven years.
If the donor dies within seven years, the gift may become chargeable to inheritance tax.
Taper relief may reduce the tax payable depending on how long the donor survives after making the gift:
- less than 3 years: no taper relief
- 3 to 4 years: 20% relief
- 4 to 5 years: 40% relief
- 5 to 6 years: 60% relief
- 6 to 7 years: 80% relief
- 7+ years: gift falls out of account for PET purposes
Transferring Money Back to the UK
To transfer funds to the UK you will need a UK bank account.
Typical details required include:
Personal details
Bank SWIFT code
IBAN number
BIC code if requested
Many individuals use foreign exchange specialists for large transfers as they may offer competitive exchange rates and lower transaction fees compared with banks.
Forward contracts may also be available to fix an exchange rate in advance, helping to reduce exposure to adverse currency movements.
Buying or Renting Property in the UK
If you have been abroad for several years, returning to the UK property market can present challenges.
Letting agents often require:
- references from previous landlords
- a credit check
- proof of income
Returning expats may not have recent UK credit history or references.
Some landlords may accept rent paid in advance, which can help applications where credit history is limited.
Most private tenancies in England are Assured Shorthold Tenancies (ASTs).
Tenants are typically required to pay:
- a deposit (usually one or two months’ rent)
- the first month’s rent in advance
Buying UK property – proof of funds
UK solicitors and banks must comply with strict anti-money laundering regulations.
Buyers may be asked to provide documentation demonstrating the source of funds and source of wealth, particularly where funds originate from overseas.
Examples of supporting documents may include:
bank statements
employment contracts
sale agreements
tax records
Delays in providing this information can slow the property purchase process.
Getting a Mortgage After Living Abroad
Securing a mortgage after living overseas can sometimes be more complex.
Many lenders require:
a recent UK credit history
proof of income
a UK address history
However, specialist lenders may assess applications individually.
Planning steps may include:
maintaining a UK correspondence address
keeping a UK bank account and credit card where possible
securing employment before returning
preparing a deposit of at least 25%
Self-employed individuals may need one to three years of accounts before being considered for borrowing.
Council tax
Council tax is payable on most residential properties in the UK.
The amount depends on the local authority and property band.
Your letting agent or estate agent should confirm the council tax band for the property.
Electoral register
Eligible British citizens living abroad can register as overseas voters.
The previous 15-year limit has been removed, allowing many long-term expats to remain registered.
Once you return and become resident in the UK again, you can register through your local council.
Insurance
Insurance requirements may change when returning to the UK.
Policies to review may include:
home insurance
car insurance
life insurance
health insurance
When purchasing a property, buildings insurance is typically required before completion of the purchase.
Many people use UK comparison websites to review multiple insurance quotes.
Moving Personal Belongings to the UK
Depending on how long you have lived abroad, you may return with only personal luggage or you may require a shipping container.
International removal companies can assist with:
packing
customs documentation
transportation
delivery
Costs depend on the size of the shipment, origin country and destination within the UK.
Sharing container space with other movers can sometimes reduce costs.
Importing vehicles
Vehicles brought into the UK must comply with UK safety and environmental standards.
Owners must notify HMRC within 14 days of arrival and complete the required NOVA registration.
Additional VAT, duty and registration requirements may apply depending on the vehicle and country of origin.
Bringing your pets home
Pets entering the UK must generally:
be microchipped
have a valid pet passport or veterinary certificate
be vaccinated against rabies
Dogs must also receive tapeworm treatment before entry.
Failure to meet these requirements may result in quarantine or refusal of entry.
Specialist pet relocation services can assist with transportation and documentation.
Accessing the NHS
The National Health Service (NHS) is a residence-based healthcare system.
British citizens returning to live in the UK are generally entitled to NHS treatment once they become ordinarily resident.
However, NHS waiting times can sometimes be lengthy, and some returning expats choose short-term private medical cover during the transition period.
Registering with a doctor
After returning to the UK, you should register with a local GP surgery as soon as possible.
It can be helpful to bring:
- copies of medical records
- prescription details
- vaccination history
If urgent medical advice is needed before registration, you can contact NHS 111.
Returning Home – The Emotional Adjustment
Many returning expats experience reverse culture shock.
The UK may have changed significantly since you left, and adjusting to life back home can take time.
Fortunately, most government services, councils and public services are now accessible online, making many aspects of relocation easier to manage.
At GSB, we explore every aspect of your financial situation to create a long-term plan aligned with your objectives and future life events.
Contact GSB to discuss how we can help you plan your return to the UK.
FAQs
If you have time, it is sensible to review your assets 12 to 18 months before returning to the UK. In some cases, disposing of certain assets before you become UK tax resident again may improve your tax position. However, this is not automatic. Temporary non-residence rules, the type of asset, the timing of the disposal and your wider income position can all affect the outcome.
If assets cannot be sold before your return, planning may still help reduce future liabilities. Early advice can be especially important where overseas investments, property or complex ownership structures are involved.
Professional advice should be taken before making any major disposals.
Your UK tax position on return depends on whether you become UK tax resident and whether you qualify for any reliefs available to returning residents.
From 6 April 2025, the UK moved to a residence-based regime for foreign income and gains. Individuals returning to the UK may be able to claim the Foreign Income and Gains (FIG) regime if they have not been UK tax resident in any of the 10 consecutive tax years before their arrival. Where available, this can provide relief on qualifying foreign income and gains for up to four tax years, but claims must be made for each relevant tax year. UK-source income and gains remain taxable in the normal way.
In some cases, split-year treatment may also apply, meaning the tax year of return is divided between a non-resident part and a resident part. This is only available where specific statutory conditions are met, and there are 8 possible cases where it can apply.
Because the rules are detailed and fact-specific, returning expats should seek professional advice before moving funds or restructuring assets.
If you are already drawing benefits from a UK pension, international SIPP or QROPS, the tax treatment of those withdrawals may change once you become UK tax resident again.
Pension withdrawals may form part of your taxable income once you return, so it is important to review:
how income will be drawn
whether any tax-free Pension Commencement Lump Sum (PCLS) is available
whether offshore bonds or other wrappers are being used alongside pension income
whether assets should be reviewed between spouses as part of broader tax planning
It is also important to review any existing international pension structure before returning. Suitability will depend on your individual circumstances, jurisdiction, retirement objectives and wider tax position. Broad statements such as one structure being “best” for most expats should be avoided.
Professional advice should always be taken before making pension withdrawals, transfers or consolidations.
Capital Gains Tax may apply when selling or transferring investments, property or other chargeable assets.
The annual CGT exempt amount is £3,000 per individual. For disposals from 6 April 2025, the rates for individuals are generally:
18% on gains within the basic rate band
24% on gains above the basic rate band
32% for carried interest
These rates replaced the older 10% and 20% framework for most individual gains from 6 April 2025.
Temporary non-residence rules may also apply if you return to the UK within the relevant period after a spell of non-residence. In some cases, gains realised while abroad may still be brought into charge when you return.
Planning ahead is important, particularly where large gains, overseas assets or jointly held assets are involved.
National Insurance contributions remain important because they affect entitlement to the UK State Pension and certain other benefits.
You can normally:
check your National Insurance record
identify any gaps
consider making voluntary contributions where appropriate
In many cases, you can only fill gaps for the previous 6 tax years. For the 2025 to 2026 tax year, voluntary rates are £3.50 a week for Class 2 and £17.75 a week for Class 3. However, from 6 April 2026, individuals will no longer be able to pay voluntary Class 2 contributions for periods abroad. For tax years 2026 to 2027 onwards, only Class 3 voluntary contributions will be available for those periods.
To receive the full new State Pension, individuals typically need 35 qualifying years, although outcomes can vary depending on contribution history. Before making voluntary payments, it is worth checking whether topping up will materially improve your entitlement.
Consulting with a financial adviser can help ensure your NI contributions align with your retirement goals and wider financial planning. For official guidance, check the UK government’s website here.
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Disclaimer
GSB Capital Ltd is registered with the Dubai International Financial Centre (DIFC), licence no. CL4377, and is regulated by the Dubai Financial Services Authority (DFSA).
This article is provided for information purposes only and does not constitute financial advice. The information contained herein is general in nature, does not take into account your personal circumstances, and should not be relied upon when making financial decisions.
All investments carry risk and past performance is not a reliable indicator of future results. You should seek advice from a qualified financial adviser before taking any financial action.
This material is intended for persons outside the United Kingdom and is not directed at, or intended for reliance by, UK retail clients.