Quick answer:
UK tax depends on your residence for each tax year (6 April–5 April). If you’re UK-resident for a tax year, your worldwide income is generally within scope (with some exceptions). If you’re non-resident for a full tax year, the UK usually taxes only UK-source income for that year.
Split-year treatment can ring-fence part of a year as “overseas”, but the Statutory Residence Test (SRT) and day-count/ties rules are technical. Six to twelve months abroad may not be enough to secure non-residence unless it aligns with a full tax year or you meet an SRT overseas test. For certain gains/income, the temporary non-residence rules can apply if you return within fewer than five full tax years.
Disclaimer: General information for England & Wales. Not tax advice.
The Moving Parts (in Plain English)
If you’ve been living and working in Dubai and are thinking about coming back to the UK, the first thing to understand is that UK tax is all about your “residence” status for each tax year. The Statutory Residence Test (SRT) is the official set of rules that decides whether you’re UK-resident or not. It’s not just about where you feel at home—there are specific tests based on how many days you spend in the UK, your family and work connections, and where you have accommodation.
If you’re UK-resident for a tax year: The UK will generally tax your worldwide income and gains for that year, even if you earned it all in Dubai.
If you’re non-resident for a full tax year: The UK usually only taxes your UK-source income (like rent from a UK property or a UK pension).
Split-year treatment: If you leave or return partway through a tax year, you might be able to split the year into an “overseas part” and a “UK part”. This can mean that foreign income earned while you were genuinely overseas is not taxed in the UK for that part of the year—but only if you meet one of the split-year cases (such as starting a UK-only home or stopping full-time work abroad).
Temporary non-residence (TNR): If you become non-resident and then return to the UK within fewer than five full tax years, some gains or income you realised while away (like selling shares or getting a big bonus) can be taxed when you come back. This rule catches out many people who think a short stint abroad is enough to avoid UK tax.
Common Mistakes and Oversights
It’s easy to get tripped up by the details. Here are some of the most frequent pitfalls:
Assuming “6 months away” is enough: Unless your time away covers a full tax year (6 April to 5 April) and you keep UK days and ties to a minimum, you’re likely still UK-resident.
Miscounting days and ties: The SRT counts days differently (the “midnight rule” means you count a day if you’re in the UK at midnight). Even a quick overnight stay or a delayed flight can tip you over the threshold.
Ignoring split-year conditions: If you don’t meet a split-year case, the whole year could be treated as UK-resident, even if you spent months abroad.
Triggering gains while away, then returning quickly: If you sell assets or take big payments while non-resident but return within five years, TNR can mean you’re taxed on those gains after all.
Forgetting about UK-source income: UK rental income, for example, is always taxable in the UK, even if you’re non-resident.
Top Tips for a Smoother Return
Plan around tax years: If you want to be non-resident, try to leave just before 6 April and return just after 5 April the following year. This gives you a full non-resident tax year.
Keep a day-count log: Use a spreadsheet or diary to track every day you spend in the UK, and note your connections (family, work, accommodation).
Check split-year eligibility: If you’re returning, see if you qualify for split-year treatment (for example, you start a UK-only home or stop full-time work abroad).
Be aware of TNR: If you’re planning to sell assets or take distributions while away, check if returning within five years could mean those are taxed in the UK.
Keep paperwork: Save leases, employment contracts, visa stamps, school enrolments, and utility bills. These can help prove your status if HMRC ever asks.
Step-by-Step: Will Your Foreign Income Be Taxed When You Return?
Map your residence year by year:
For each tax year, apply the SRT. Did you meet an automatic UK test, an automatic overseas test, or do you fall into the “sufficient ties” test?Check for split-year treatment:
In the year you return, see if you meet a split-year case (like starting a UK-only home or stopping full-time work abroad). If so, you can split the year into overseas and UK parts.Allocate income/gains:
Work out which income and gains arose in the overseas part (usually outside UK scope) and which in the UK part (taxable in the UK). Keep evidence of when you earned or received each item.Consider TNR:
If you were non-resident for fewer than five full tax years, check if TNR applies to any gains or income you realised while away. If you want to avoid this, don’t trigger big disposals or payments too close to your return.Document and review:
Keep a short file note with your SRT analysis, split-year logic, day counts, and ties. Review it before you book your return flight.
What Timeframe Is “Safer” to Return?
There’s no universal answer, but some patterns are clear:
Returning after fewer than 12 months: This can be fine if you were non-resident for a full tax year (for example, left just before 6 April and returned just after the next 5 April) or met an automatic overseas test. Otherwise, you may still be UK-resident, and your Dubai income could be taxed in the UK.
For capital gains and certain income: Being non-resident for five full tax years is generally safer to avoid TNR. If you return sooner, plan the timing of disposals carefully.
If you can’t bridge a full tax year: Check if split-year treatment will apply. If not, expect the whole tax year to be treated as UK-resident if the SRT says so.
Real-Life Examples
Example 1 – 6 months away but still resident:
Amira leaves the UK in July and returns in January (same tax year). She spends over 120 days in the UK that year and has two UK ties (her partner and a flat she keeps on). The SRT keeps her UK-resident for the whole year. Her Dubai salary for those months is within UK scope and must be declared.
Example 2 – Full tax year non-resident:
James leaves the UK on 31 March 2024 and stays in Dubai through 5 April 2025, returning on 6 April 2025. He keeps UK days very low and meets the automatic overseas test by working full-time abroad. For 2024/25, he’s non-resident; only UK-source income is taxed. He is resident again in 2025/26. No split-year needed because he straddled a full tax year.
Example 3 – Split-year return:
Hina left in 2023/24 and met the overseas work test. She returns on 1 September 2025 to a UK-only home. Case 6 split-year applies in 2025/26. Foreign income arising before 1 September falls in the overseas part and is outside UK scope; later foreign income is taxed in the UK.
Example 4 – Temporary non-residence bite:
Leo sold a portfolio while non-resident and returns after three full tax years. Some gains fall within TNR and are taxed on his return year. Had he remained non-resident for five full tax years, those gains would generally have stayed outside UK scope.
Where People Get Stuck
Day counting vs ties: The SRT’s “sufficient ties” test changes depending on how many days you spend in the UK and whether you were UK-resident in previous years.
Evidence for split-year: Not keeping documents that prove when the UK became your only home or when overseas work ceased can make it hard to claim split-year treatment.
Overlooking UK rent: UK property income remains taxable and may require registration under the Non-Resident Landlord Scheme while you’re away.
Where to Get Help
A UK private client tax adviser with experience in residence, split-year, and TNR issues can help you sense-check your plan.
HMRC’s RDR3 (statutory residence guidance) and HS302 (split year) help sheets are useful for self-research.
Final Thought
If you want your foreign income to stay outside UK tax, plan your calendar carefully. Aim for at least one full non-resident tax year or a clear split-year case, and be wary of the five-year TNR window for disposals. Even a one-hour pre-return review can help you avoid expensive surprises.
Caira is backed by tens of thousands of legal and financial documents, updated weekly, and is designed to help ordinary people make sense of the rules—unlike generic chatbots. If you’re unsure, upload your plan or questions for a clear, plain-English check.
Disclaimer: This article is for general information only and is not tax advice. Tax rules can change, and your circumstances may be unique.
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