x Abu Dhabi, UAEMonday 24 July 2017

Will UAE resident be taxed on savings sent home to the UK?

Keren Bobker gives advice on tax liability in the United Kingdom.

I moved to Abu Dhabi to take up a permanent job at the end of last year. I now need to send some of my earnings to the UK, but I am worried I will be taxed on this as I have not been out of the UK for a full year. Do I need to wait a full year or is there something I can do before this date? LN, Abu Dhabi

It is true that UK expats are not formally considered UK non-resident for tax purposes – without a liability to UK income tax –until they have been living overseas for a full tax year: from April 6 one year until April 5 the following year. It will, however, be assumed that this is the case, unless the individual returns prematurely and then tax could be payable on overseas earnings. LN has advised that he intends to remain in the UAE for several years so he is able to remit UAE income to the UK without having to pay income tax.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with more than 20 years of experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.

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