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Doing Business in Dubai? Here’s What You Need to Know About UK Tax

Moving to Dubai or expanding your business there can open the door to global growth, tax advantages and exciting new ventures. But for UK business owners, investors, and directors, there’s one crucial question that often gets overlooked:

“Do I still owe UK tax?”

The answer? It depends.

Whether you’re planning to relocate, run your UK company from abroad or invest in Dubai while keeping assets in the UK, your UK tax position doesn’t vanish overnight. At GoldHouse, we work with entrepreneurs and property investors navigating this exact scenario, structuring everything from tax-efficient profit extraction to UK compliance.

Here’s what you need to know.

The Rise of UK-Dubai Business Ties

Dubai has become a hotspot for UK-based entrepreneurs, investors, and digital nomads. With:

  • 0% personal income tax
  • A growing economy and pro-business regulations
  • Strategic positioning between Europe, Asia, and Africa

…it’s easy to see the appeal. But while Dubai might offer tax perks locally, your UK ties still matter, especially if you keep property, business ownership or financial interests in the UK.

Does HMRC Still Apply? Your UK Tax Residency Status

The first step is determining your UK tax residency because this determines whether you’re still liable for UK income tax.

This is assessed using the Statutory Residence Test, which looks at:

  • How many days you spend in the UK
  • Where your main home is
  • Where your business and family ties remain

Even if you live in Dubai full-time, you could still be classed as UK tax resident, especially in the year of departure. That means your global income (not just UK income) may be taxable in the UK.

Understanding and planning your residency is key to unlocking tax efficiency.

Key UK Taxes to Consider as a Dubai-Based Business Owner

Even if you’ve left the UK, you may still be liable for certain taxes, including:

  • Corporation Tax if you operate a UK limited company
  • Income Tax on UK salaries or rental income
  • Dividend Tax on profits taken from a UK company
  • Capital Gains Tax if you sell UK property or shares
  • Inheritance tax on UK based assets and potentially foreign assets aswell

In some cases, HMRC still considers your company to be managed and controlled from the UK, even if you’re living in Dubai, so tax still applies.

This is why where decisions are made and how your business is structured matters.

Corporation Tax: What If You Keep a UK Company?

Many Dubai-based entrepreneurs keep a UK limited company, for property investments, UK clients or as part of a wider group structure.

This can be effective, but you need to be careful:

  • If the company is run from the UK, it’s taxed as normal
  • If run from Dubai, HMRC may still argue it’s UK-controlled unless structured properly
  • Profit extraction must be planned to avoid double taxation or unnecessary liability

At GoldHouse, we advise clients on multi-jurisdictional structures to stay compliant without overpaying.

Dividends, Salary & Profit Extraction Across Borders

As a Dubai resident, you may benefit from 0% income tax locally, but if you’re still UK tax resident or extract income from a UK company, HMRC may still expect a cut.

Some tips:

  • Dividends from a UK company may be taxable depending on residency
  • Salaries paid to UK tax residents attract PAYE as normal
  • Loans from directors’ accounts or pension contributions must be handled carefully

The solution isn’t to stop paying yourself, it’s to structure how you do it. That’s where tailored tax planning comes in.

How Double Taxation May Affect You (And When It Doesn’t)

The UK and UAE have a double taxation agreement (DTA) which helps avoid being taxed twice on the same income.

But it’s not automatic. To benefit, you may need:

  • Correct residency documentation
  • A certificate of tax residency from UAE authorities
  • Proper reporting and timing of income

This DTA can be powerful but only when used correctly as part of a wider tax plan.

Planning Tips to Stay Tax-Efficient and Compliant

Here’s how to keep your affairs clean and efficient:

  • Understand your residency year-by-year and plan around it
  • Separate business control between UK and Dubai where appropriate
  • Use pensions, trusts, or group structures to protect and grow wealth
  • Keep clean records for HMRC and UAE audits
  • Work with a UK-Dubai tax advisor who understands both sides of the equation

Building Wealth Across Borders: The GoldHouse Advantage

At GoldHouse, we help entrepreneurs and investors bridge the UK-Dubai gap. Whether you’re expanding into the UAE, moving abroad or structuring profits across borders, we make sure you stay compliant and build wealth efficiently.

Book a discovery call today to get expert guidance, personalised tax planning and peace of mind, wherever your business takes you.

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