Personal Tax Strategy &
International Income Optimisation

1. Foreign Income & the FIG Regime — What Actually Applies to You

Clarification: The 4-Year FIG Regime & Your Eligibility

The UK introduced the Foreign Income and Gains (FIG) regime on 6 April 2025 via Finance Act 2025, replacing the historic non-dom remittance basis that had existed for over two centuries. Under this new regime, qualifying individuals can claim relief from UK tax on their foreign income and gains for up to four consecutive tax years. On the surface, this sounds like it could be extremely beneficial for someone in your position — however, the eligibility criteria are strict.

To be eligible, you must be a "qualifying new resident", which means you must have been non-UK tax resident for at least 10 consecutive tax years immediately before the tax year in which you are claiming the relief. Any single year of UK residence within that 10-year window resets the clock entirely. Crucially, this is a domicile-blind test — it does not matter whether you are UK-domiciled or not. What matters is purely your residence history.

Two Scenarios — Which One Are You?

Since we have not yet confirmed exactly how long you have been continuously UK resident, we want to lay out both possible scenarios so you can immediately identify where you stand.

Your Foreign Income — How It Is Taxed (Assuming Scenario A)

As a UK tax resident who does not qualify for FIG, you are required to declare and pay UK tax on your worldwide income. This includes all income from India, Singapore, the European country, and your UK employment. This applies regardless of whether the income stays in foreign bank accounts or is brought to the UK. The old rules where keeping money offshore could defer UK tax (the remittance basis) were abolished on 5 April 2025.

However, being taxed in multiple countries means you are entitled to Double Taxation Relief (DTR) under the Taxation (International and Other Provisions) Act 2010, Part 2. The UK has extensive double taxation agreements with both India and Singapore. Where tax has been paid abroad on the same income, you can claim a credit against your UK tax liability for the foreign tax already paid. This credit is limited to the lower of the foreign tax paid or the UK tax attributable to that income. You claim this through your Self Assessment tax return using the SA106 (Foreign) supplementary pages.

Income From India

The UK-India Double Taxation Avoidance Agreement (DTAA), signed in 1993 with subsequent protocols, governs how your Indian income is taxed across both jurisdictions. India taxes residents on worldwide income and non-residents on Indian-sourced income. As a UK resident, India retains the right to tax income that is sourced in India, but the UK also taxes you on that same income — with credit given for Indian tax paid.

The key treaty provisions are as follows. Interest income from Indian bank accounts or deposits is generally subject to Indian withholding tax at 10–15% under the treaty, and this can be credited against your UK tax. Dividend income from Indian companies can be taxed in India at up to 10% (if you hold 10% or more of the capital) or 15% (general rate). Rental income from Indian property is taxable in both jurisdictions, with DTR available. Capital gains on Indian shares have specific treaty provisions — India retains the right to tax gains on shares in Indian companies, but you can claim credit for Indian CGT paid against your UK CGT liability. India's domestic CGT rates are 10–20% depending on the asset type and holding period.

It is essential that you file your Indian tax returns correctly and retain all Indian tax documentation — Form 16 (for employment), Form 16A (for TDS on other income), and annual tax certificates from banks — to support your DTR claims in the UK. Claims must be made within 4 years of the end of the relevant UK tax year.

Income From Singapore

Singapore operates a territorial tax system, meaning it generally taxes only income sourced in or remitted to Singapore. This is a fundamentally different approach from the UK's worldwide taxation model. Singapore's personal tax rates are progressive, with a top rate of 24% on income exceeding SGD 1,000,000 (approximately £590,000). Importantly, Singapore does not tax dividend income received by individuals, and there is no capital gains tax in Singapore.

The UK-Singapore Double Taxation Agreement (amended by the 2012 protocol) provides the following key rates: dividends — up to 15% source-state withholding (0% for pension funds); interest — up to 12%; royalties — up to 12%. For employment income, the treaty gives the primary taxing right to the country where the duties are performed. Capital gains are generally taxable only in the state of the alienator's residence.

You mentioned you will engage a local advisor in Singapore for your Singapore tax return, which is sensible. We strongly recommend that your Singapore advisor and your UK advisor communicate directly to ensure consistent classification of income across both jurisdictions. Mismatches in how income is categorised can lead to either double taxation (if both countries claim taxing rights on different bases) or under-reporting, which exposes you to penalties in either jurisdiction. We are happy to liaise with your Singapore accountant directly on your behalf.

Income From Europe

Without knowing the specific European country, we cannot provide a detailed treaty analysis here. However, most EU and European countries have comprehensive double tax treaties with the UK. The general principle remains the same: income is reportable in the UK on the arising basis, with credit given for foreign tax paid under the relevant treaty. Once you confirm the specific country, we can provide a full breakdown of the treaty provisions, withholding rates for each income type, and the optimal reporting strategy for that jurisdiction. If no treaty exists (which is rare for European countries), unilateral relief under TIOPA 2010 s.18 would still provide credit for foreign tax paid.

2. Dubai Relocation — Tax Implications, Planning & Timing Strategy

The Opportunity

The UAE does not levy personal income tax on individuals. There is no tax on employment income, investment income, rental income, or capital gains for individuals. The UAE introduced a 9% federal corporate tax from 1 June 2023, but this applies only to businesses and companies with profits exceeding AED 375,000, not to individuals on employment or investment income. There are no social security contributions for non-GCC nationals.

If you become non-UK tax resident and take up employment in Dubai, your Dubai employment income will be completely free of both UAE and UK income tax. At your income level, this represents potentially the single most impactful tax planning decision available to you. However, getting this right requires meticulous planning — HMRC scrutinises Dubai relocations very closely, and it is one of the most common scenarios they investigate.

Your Timeline: The 12-Month Notice Period

The Dubai job offer starts March 2027, and you need to give your current UK employer 12 months' notice. This means you would likely need to hand in your notice by approximately March 2026 — that is, now or very shortly. The critical question for tax purposes is: in which tax year does your departure fall, and how can we minimise your UK tax in that year?

If you leave the UK and commence Dubai employment in March 2027, this falls in the 2026/27 tax year (6 April 2026 to 5 April 2027). You would have been UK resident for most of that tax year before departing. This is where Split Year Treatment becomes critical.

Split Year Treatment — Case 1 Analysis

Under the Statutory Residence Test (SRT), specifically Case 1 of Part 3, Schedule 45, Finance Act 2013, if you leave the UK partway through a tax year to start full-time work overseas, you may qualify for Split Year Treatment. This would mean the 2026/27 tax year is split into two parts: a UK part (6 April 2026 until your departure date) where you are taxed as UK resident on worldwide income, and an overseas part (from your departure date to 5 April 2027) where you are treated as non-resident and only UK-sourced income is taxable.

To qualify under Case 1, you must meet all of the following conditions: you must start full-time work overseas averaging 35 or more hours per week; you must have no significant UK work after your departure — this means no more than incidental UK duties, and a day of 3 or more hours of UK work counts as a UK work day; you must have no UK home available to you after departure, or if you do, you must not spend more than a permitted number of days in it; and you must spend fewer than 16 days in the UK between your departure date and 5 April 2027.

The Statutory Residence Test — Ongoing Compliance After Departure

Once you leave the UK, you need to ensure you remain non-UK tax resident under the SRT for each subsequent tax year. The SRT operates through a three-stage hierarchy set out in Schedule 45, Finance Act 2013.

The most straightforward route to non-residence is the First Automatic Overseas Test: if you were UK resident in one or more of the 3 preceding tax years and are present in the UK for fewer than 16 days in the year, you are automatically non-resident. The Third Automatic Overseas Test provides an alternative: if you work full-time overseas (averaging 35+ hours per week), spend fewer than 91 days in the UK, and have fewer than 31 UK working days, you are automatically non-resident. This is the test you would most likely rely on in full years after departure.

If you spend more than 15 days but fewer than 183 days in the UK, your residence status depends on the Sufficient Ties Test. Five ties are assessed: a family tie (UK-resident spouse, civil partner, or minor child); an accommodation tie (UK accommodation available for 91+ continuous days, used for at least 1 night); a work tie (3+ hours of UK work on at least 40 days); a 90-day tie (you spent 90+ days in the UK in either or both of the 2 preceding years); and a country tie (the UK is the country where you spent the most midnights, applicable only to "leavers").

For someone in your position as a "leaver" (UK resident in one or more of the previous 3 years), the day thresholds are: with 4 or more ties, you become UK resident at just 16 days; with 3 ties, the threshold is 46 days; with 2 ties, it is 91 days; with 1 tie, it is 121 days. At 183 days, you are automatically UK resident regardless of ties.

The Temporary Non-Residence Trap

This is critically important and something many people overlook. If you have been UK resident for at least 4 out of the 7 tax years before your departure year, and you return to the UK within 5 complete tax years, the Temporary Non-Residence (TNR) rules under TCGA 1992 Schedule 4A may apply. Under TNR, certain income and capital gains that arose while you were non-resident can be taxed when you return as if they arose in the year of return.

Specifically, TNR can claw back: capital gains on disposals of assets you held before departure; UK pension lump sums and flexible drawdown withdrawals taken during non-residence; certain close company distributions; and chargeable event gains on life insurance policies. For someone departing in tax year 2026/27, the TNR window closes at the end of 2031/32 — you must not become UK resident again until 2032/33 at the earliest to be completely safe.

The good news is that overseas employment income earned while genuinely non-UK resident is not caught by TNR rules. Your Dubai salary is fully protected from clawback regardless of when you return. Similarly, capital gains on assets acquired and disposed of entirely during your period of non-residence fall outside TNR scope — they were not "held before departure."

UK-UAE Double Taxation Agreement

The UK and UAE signed a comprehensive double tax treaty on 12 April 2016, effective from 6 April 2017 for income tax and CGT. Since the UAE does not charge personal income tax, the treaty primarily benefits you by confirming that your Dubai employment income is not taxable in the UK once you are non-UK resident. The treaty also provides important protections for other income types: dividends — 0% source-state withholding; interest — 0% source-state withholding; royalties — taxable only in the state of residence; and critically, pensions — taxable only in the state of residence under Article 17. This last point means that if you access your UK pension while UAE-resident with a valid UAE Tax Residency Certificate, the pension income could be exempt from UK tax.

Obtaining Your UAE Tax Residency Certificate

A UAE Tax Residency Certificate (TRC) is issued by the UAE Federal Tax Authority. You will need: a valid UAE residence visa; proof of minimum 180 days of UAE presence in the relevant period; proof of UAE accommodation (tenancy contract or property ownership); bank statements from a UAE bank; and an entry/exit report from the UAE immigration authorities. Processing typically takes 5–10 business days at a cost of approximately AED 50 (roughly £11). This certificate is essential for claiming treaty benefits and should be obtained as soon as you are eligible after arrival in the UAE.

3. International Inheritance — Asset Sale & UK Tax Impact

The New Residence-Based IHT Rules

From 6 April 2025, the UK moved from a domicile-based to a residence-based system for Inheritance Tax, introduced via Finance Act 2025. Under the new rules, if you have been UK tax resident for at least 10 out of the previous 20 tax years, you are classified as a "Long-Term Resident" (LTR) and your worldwide assets fall within the scope of UK IHT. This is a significant change from the old system where domicile status determined IHT liability.

Current IHT rates and thresholds, which are confirmed frozen until at least April 2028, are as follows. The nil-rate band is £325,000 (frozen since 2009). The residence nil-rate band (RNRB) is £175,000, available where a qualifying residence passes to direct descendants. The combined maximum per person is therefore £500,000 (or £1,000,000 for married couples with transferable allowances). However, the RNRB tapers by £1 for every £2 of estate value above £2,000,000, disappearing entirely at £2,350,000. Given your wealth level, the RNRB will almost certainly be fully tapered away — meaning your effective nil-rate band is just £325,000. Everything above that is taxed at 40% (or 36% if at least 10% of the net estate is left to charity).

The "Tail Provision" — Why Leaving the UK Doesn't Immediately Help

This is one of the most important but least understood aspects of the new IHT rules. After you cease UK residence, you do not immediately fall out of worldwide IHT scope. The tail provision operates on a sliding scale tied to your years of UK residence:

For example, if you have been UK resident for 15 of the last 20 tax years and leave in March 2027, you would remain within worldwide IHT scope for approximately 8 years after ceasing residence — potentially until around 2034/35. During this tail period, if you were to die, your entire worldwide estate would be exposed to UK IHT at 40%. This underscores the importance of knowing your exact UK residence history, which we need you to confirm.

Receiving Inherited Assets — The Tax Position

First, the good news: receiving an inheritance is not in itself a taxable event in the UK. There is no UK income tax or capital gains tax on the act of receiving inherited money or assets. Under TCGA 1992 s62, the deceased is deemed to dispose of assets at market value at death, but this deemed disposal generates no actual CGT charge — gains effectively "die with the individual." Any IHT liability falls on the estate of the deceased, not on you as the beneficiary.

However, what happens after you receive the assets is where tax complications arise.

If you sell inherited assets: Capital Gains Tax may apply on any increase in value from the date of death to the date of sale. The acquisition cost for CGT purposes is the market value at the date of death (the "probate value"), not the original purchase price paid by the deceased. This is a full market value uplift under TCGA 1992 s62(1)(a). For overseas assets, the gain must be calculated in GBP using exchange rates at both the date of death and the date of sale, which creates exposure to currency gains or losses independent of the underlying asset movement.

If the assets generate income: Any rental income, interest, or dividends from inherited overseas assets are taxable in the UK as your income from the date you receive them. This applies on the arising basis — regardless of whether you bring the income to the UK.

CGT Rates for 2025/26 and 2026/27

Following the October 2024 Budget changes, CGT rates were aligned across all asset types. The rates are now 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers on all gains — residential property, shares, and other assets alike. At your income level, you will pay the full 24% rate on any capital gains. The annual exempt amount is £3,000 for 2025/26 and 2026/27, reduced dramatically from £12,300 as recently as 2022/23. Business Asset Disposal Relief (formerly Entrepreneurs' Relief) is at 14% from April 2025, rising to 18% from April 2026.

Double Taxation on Inherited Assets

If the inherited assets are located in a country that also charges inheritance tax, estate duty, or capital gains tax on disposal, you may face a double tax charge. The UK has IHT double tax treaties with several countries including India, France, Netherlands, Sweden, Switzerland, Ireland, Italy, South Africa, and the USA. Where a treaty exists, relief is generally available to prevent double taxation. Where no treaty exists, you may be able to claim Unilateral Relief from HMRC under IHTA 1984 s.159 for foreign tax paid on the same assets.

We would need to know the specific countries where the inherited assets are located to provide detailed guidance on the treaty provisions, applicable reliefs, and optimal disposal strategy for each asset. We recommend you provide us with a schedule of the inherited assets, their estimated values, and their locations so we can build a bespoke disposal plan.

4. Overall Income Optimisation — Structuring $10M+ Income

Understanding Your Current Tax Exposure

With total taxable income of approximately $10 million USD (roughly £7.9 million at current exchange rates), you are firmly in the Additional Rate tax band (45% on income above £125,140 for 2025/26). Your personal allowance of £12,570 is completely withdrawn because it reduces by £1 for every £2 of income above £100,000, disappearing entirely at £125,140. When you factor in National Insurance contributions (if applicable to your employment type — employees pay 8% on earnings between £12,570 and £50,270, and 2% above that) and the personal allowance clawback, your effective marginal tax rate on UK-source income is approximately 47–48%.

The Dubai Factor — The Biggest Tax Saving Available

The single most impactful tax optimisation available to you is the Dubai relocation itself. Moving to a zero-income-tax jurisdiction could save you in the region of £3–4 million per year in UK income tax — a rough estimate based on your $10M income. This dwarfs every other optimisation strategy combined by an order of magnitude. However, it must be executed correctly. The consequences of getting the residence status wrong at this income level would be catastrophic — a failed non-residence claim on £7.9M of income could result in a UK tax bill of £3.5M+ plus penalties and interest.

Charitable Giving — Gift Aid for Additional Rate Taxpayers

If philanthropy is something you value, Gift Aid donations are particularly efficient for additional rate taxpayers. Here is exactly how the maths works:

At your income level, if you were to donate, say, £100,000 per year through Gift Aid, your net cost would be approximately £68,750, and the charities would receive a total of £125,000. This is a highly efficient way to support causes you care about while reducing your overall tax bill.

Other Available Reliefs and Allowances

Beyond the Dubai move and charitable giving, several other reliefs are available to you. These are covered in detail in their own dedicated sections later in this report — Pension Contributions (Section 7) and Tax-Efficient Investment Structures including EIS, VCT, SEIS and ISAs (Section 8). At your income level, the absolute amounts from these vehicles are relatively modest compared to total income, but they represent guaranteed, risk-adjusted tax savings and should not be overlooked, particularly in the period before your departure when you are still a UK taxpayer.

5. Singapore Tax Considerations & Cross-Border Planning

Overview of Your Singapore Position

You mentioned that you receive income from Singapore and will engage a local advisor there for Singapore tax filing. This is the right approach. Singapore operates a territorial tax system — it generally taxes only income that is sourced in or remitted to Singapore. This is fundamentally different from the UK's worldwide taxation approach. Singapore's personal tax rates are progressive, with a top rate of 24% on income exceeding SGD 1,000,000 (approximately £590,000 at current exchange rates).

Several features of Singapore's tax system are particularly relevant to you. Singapore does not tax dividend income received by individuals. There is no capital gains tax in Singapore. And foreign-sourced income is generally not taxable unless it is remitted to Singapore (with some exceptions for partnerships). This means that depending on the nature of your Singapore income, your Singapore tax exposure may be significantly lower than you expect.

How Different Income Types Are Treated

Employment income: If you are employed by a Singapore entity but performing duties in the UK, the income is taxable in the UK based on where the duties are performed. It may also be taxable in Singapore depending on whether the duties are considered Singapore-sourced. The UK-Singapore DTA generally gives the primary taxing right to the country where the employment duties are physically performed, with a standard 183-day exemption. If you perform duties in both countries, the income may need to be apportioned.

Investment income (dividends, interest): Singapore does not tax dividend income received by individuals at all — so Singapore dividends are effectively only taxable in the UK (at the dividend tax rates of 8.75%/33.75%/39.35%). Interest income from Singapore may be taxed depending on the source, at rates up to 24%. The UK will tax you on all such income, but credit will be given for any Singapore tax paid under the DTA. The treaty caps source-state withholding on interest at 12%.

Rental income from Singapore property: If you own property in Singapore, rental income is taxable in both Singapore and the UK. Singapore taxes net rental income (after allowable expenses) at your marginal rate. The UK also taxes you on the same income, but grants DTR for the Singapore tax paid. You would declare this on your SA106 supplementary pages.

Business or trading income: If you have business profits from a Singapore entity, the taxation depends on whether it constitutes a permanent establishment in Singapore under the treaty. This is an area where classification mismatches between the two countries' tax authorities can create complications, and where coordinated filing between your Singapore and UK advisors is essential.

Impact of Your Dubai Move on Singapore Income

Once you relocate to Dubai and become non-UK resident, your Singapore income will no longer be reportable or taxable in the UK (unless it is UK-sourced, which Singapore income would not be). You would then need to consider the Singapore-UAE tax position instead. Since the UAE has no personal income tax, and Singapore only taxes income sourced in or remitted to Singapore, this creates a potentially very favourable structure where your Singapore investment income is taxed only in Singapore at potentially lower rates and not taxed at all in the UK or UAE.

If you have Singapore-sourced employment or business income, you would continue to pay Singapore tax on that income at Singapore's rates (up to 24%), but with no UK tax on top. The overall effective rate on your Singapore income could drop significantly after the move.

6. National Insurance & Protecting Your UK State Pension

What Happens to NI When You Leave the UK

UK Class 1 National Insurance contributions cease when you leave UK employment. Once you are working in Dubai for a UAE employer, you will no longer pay UK NI on your earnings. There is no bilateral social security agreement between the UK and the UAE, which means your UAE work periods do not count toward UK State Pension qualifying years, and there is no coordination of benefits between the two countries.

This is different from moving to, say, an EU country or the USA, where bilateral agreements would typically protect your pension rights. With the UAE, your UK NI record simply stops accumulating qualifying years from the point of your departure.

Voluntary Class 3 Contributions — Should You Pay?

You can choose to make voluntary Class 3 NI contributions while living abroad to continue building your UK State Pension entitlement. You would apply via Form CF83 (Application to pay voluntary National Insurance contributions abroad), submitted to HMRC's National Insurance Contributions Office.

The current rate for voluntary Class 3 contributions is approximately £17.75 per week (around £923 per year). For someone with your income level, this is a trivially small amount relative to the benefit it protects.

The full new State Pension requires 35 qualifying years. A minimum of 10 qualifying years is needed for any entitlement at all. Between 10 and 35 years, entitlement is proportional. If you have already built up, say, 15 qualifying years, you would need another 20 years of contributions (whether employed or voluntary) to reach the full amount. The general deadline for paying voluntary contributions is 6 years after the end of the relevant tax year.

State Pension While Living in the UAE — The Freezing Issue

There is an important complication. The UK State Pension, when paid to someone living in the UAE, is frozen at the rate when first claimed or when the individual left the UK. Because there is no social security agreement with the UAE, the annual uprating (the Triple Lock guarantee — the higher of inflation, average earnings growth, or 2.5%) does not apply. This means if you claim your State Pension while living in Dubai, the amount you receive will never increase for as long as you remain there.

If you return to the UK, the pension reverts to the current full rate — you do not lose the increases permanently, only during the period you are abroad. This creates an interesting planning consideration.

7. Pension Contributions — Tapering, Strategy & Pre-Departure Planning

The Tapered Annual Allowance at Your Income Level

The standard Annual Allowance for pension contributions is £60,000 for 2025/26. However, the Tapered Annual Allowance is the binding constraint for someone at your income level. For individuals with adjusted income above £260,000 (and threshold income above £200,000), the allowance reduces by £1 for every £2 of income above £260,000, reaching a floor of £10,000 at adjusted income of £360,000 and above.

With approximately £7.9 million of income, your adjusted income is well above the £360,000 ceiling. This means your effective annual pension allowance is £10,000. You cannot contribute more than £10,000 gross to your pension in any single tax year without incurring the Annual Allowance Charge (which effectively claws back the tax relief and then some).

Carry Forward — Can You Use Previous Years?

The carry forward rules allow you to utilise unused annual allowance from the previous three tax years. However, carry forward only gives you the unused amount from each year, based on that year's tapered allowance. If your income was similarly high in 2022/23, 2023/24, and 2024/25, your tapered allowance in each of those years was also likely £10,000. So you can only carry forward any unused portion of those £10,000 allowances.

If, for example, you contributed nothing in those three years, you could potentially carry forward up to £30,000 of unused allowance, giving you a total of £40,000 in the current year. At 45% tax relief, a £40,000 gross pension contribution would cost you only £22,000 net and would save you £18,000 in tax.

Non-UK Residents and Pension Contributions

Once you become non-UK resident, you can still contribute to UK registered pension schemes, but tax relief is severely limited. Non-residents can only receive tax relief on contributions of up to £3,600 gross per year (meaning you pay £2,880 net, with £720 basic rate relief claimed by the pension provider). No higher or additional rate relief is available. Your overseas employment income does not count as "relevant UK earnings" for pension contribution purposes.

This means that pension contributions become far less attractive once you are in Dubai. The time to maximise this relief is now, while you are still a UK taxpayer.

Accessing Your Pension From Dubai

Under the UK-UAE Double Taxation Agreement, Article 17 provides that pensions are taxable only in the state of residence. This means that if you are UAE-resident with a valid UAE Tax Residency Certificate, pension income (including drawdown payments from your UK pension) could be exempt from UK income tax. Since the UAE also does not tax pension income, this creates a potentially tax-free withdrawal route.

However, you should be aware that the Lump Sum Allowance (LSA) of £268,275 caps the tax-free pension commencement lump sum, and the Lump Sum and Death Benefit Allowance (LSDBA) of £1,073,100 caps combined tax-free lump sums and death benefit lump sums. These replaced the old Lifetime Allowance from 6 April 2024. If you access pension benefits while non-resident, you will need to complete the relevant HMRC forms to claim the treaty exemption.

8. Tax-Efficient Investment Structures — EIS, VCT, SEIS & ISAs

Why This Matters Before You Leave

While you are still a UK taxpayer, you have access to several government-backed tax-advantaged investment schemes that offer meaningful income tax relief, CGT exemptions, and deferral opportunities. Once you leave the UK and become non-resident, you lose access to these reliefs. The window for using them is therefore now, in the period before your departure.

Enterprise Investment Scheme (EIS)

The EIS offers 30% income tax relief on investments of up to £1,000,000 per year — or up to £2,000,000 if at least £1,000,000 is invested in "knowledge-intensive companies" (KICs). This means a potential income tax reduction of up to £300,000 to £600,000 per year. The shares must be held for a minimum of 3 years to retain the relief.

Additional benefits include: capital gains on EIS shares are CGT-exempt after the 3-year holding period; CGT deferral relief is available — gains from the disposal of any asset can be deferred by reinvesting the proceeds into EIS shares (this is particularly powerful for deferring gains on pre-departure assets); and loss relief is available if the investment fails, allowing you to set the loss against your income tax liability.

EIS relief can also be carried back to the previous tax year, which means investments made in 2026/27 (before your departure) could generate relief against your 2025/26 income as well.

Venture Capital Trusts (VCTs)

VCTs offer 30% income tax relief on investments of up to £200,000 per year, yielding up to £60,000 in tax reduction. Shares must be held for 5 years to retain the relief. VCT dividends are tax-free, and disposal gains are exempt from CGT. Unlike EIS, VCTs do not offer CGT deferral relief — but they do provide a diversified, fund-managed approach to tax-efficient investing.

Seed Enterprise Investment Scheme (SEIS)

SEIS offers the highest income tax relief rate of any UK scheme: 50% income tax relief on investments of up to £200,000 per year (the limit was increased from £100,000 in April 2023), yielding up to £100,000 in tax reduction. The minimum holding period is 3 years. Additionally, 50% of capital gains reinvested into SEIS shares are exempt from CGT.

ISAs — Individual Savings Accounts

The annual ISA allowance is £20,000 for 2025/26, which can be split across Cash ISAs, Stocks & Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs. While the allowance is modest relative to your total income, a Stocks & Shares ISA provides a permanent tax-free wrapper — all dividends, interest, and capital gains within the ISA are completely free of UK tax, forever, regardless of your future residence status.

Once you become non-UK resident, you cannot contribute to an ISA. However, existing ISAs remain open and continue to grow tax-free. You should maximise your ISA contributions for 2025/26 and (during the UK part of) 2026/27 before you leave.

What Happens to Your Investments When You Leave?

Existing ISAs remain open and tax-free — you just cannot make new contributions. EIS/SEIS/VCT shares held for the required minimum period retain their tax relief regardless of your residence status. If you sell EIS shares after the 3-year holding period while non-UK resident, the gain is CGT-exempt under the EIS rules and also outside UK CGT scope as a non-resident — a double layer of protection. If you sell before the minimum holding period, the income tax relief is clawed back regardless of where you live.

9. Year-by-Year Tax Planning Calendar: 2026–2031

This calendar provides a month-by-month and year-by-year roadmap for your tax planning, covering the critical period from now through the end of the 5-year Temporary Non-Residence window. Each milestone is tied to a specific legislative requirement or planning opportunity.

10. What If You Return to the UK? — FIG Eligibility & Long-Term Planning

The 10-Year FIG Threshold

Here is where your long-term planning intersects with the FIG regime we discussed in Section 1. Remember — the FIG regime grants 4 years of UK tax exemption on foreign income and gains to anyone who becomes UK resident after being non-resident for at least 10 consecutive tax years. If you leave the UK in March 2027 (tax year 2026/27) and remain continuously non-UK resident, you would meet the 10-year threshold if you return no earlier than tax year 2037/38.

Upon return, you would be able to elect for all your foreign income and capital gains — from India, Singapore, Europe, and anywhere else — to be completely exempt from UK tax for 4 consecutive years. Given your substantial international income, this could save you millions in UK tax during those 4 years. And unlike the old remittance basis, under FIG you can freely bring the money to the UK — there is no requirement to keep it offshore.

The IHT Tail Interplay

Even after you qualify for FIG or clear the TNR window, your worldwide assets may still be within UK IHT scope due to the tail provision discussed in Section 3. If you have been UK resident for 15 of the last 20 tax years, the IHT tail is approximately 8 years. This means your worldwide estate could remain exposed to UK IHT at 40% until approximately 2034/35 — even though you left in 2027. Life insurance policies written in trust can help mitigate this exposure during the tail period, and we can advise on appropriate structures.

11. Structuring Your Notice Period — Practical Steps Before Departure

Your UK Property

What you do with any UK property you own is one of the most consequential decisions for your SRT position. Under the SRT, having a UK home available to you after departure can disqualify you from Split Year Treatment and, depending on other factors, even cause you to be UK resident. The definition of "home" under the SRT is broad — it includes any place where you live, or have lived, for a continuous period of 91 days or more, with at least 30 days in the relevant tax year.

Your options and their tax implications are as follows. Selling: Triggers a CGT calculation on any gain since acquisition (or since 5 April 2015 for properties owned before that date). The gain is taxed at 24% for higher-rate taxpayers. You must report and pay CGT within 60 days of completion. However, if this is your main residence, Private Residence Relief (PRR) would cover the period of occupation, with the final 9 months always qualifying regardless. Letting: You retain the property but it generates UK rental income, subject to the Non-Resident Landlord Scheme. It may or may not constitute a "UK home" depending on whether you retain the right to return — a formal tenancy agreement with exclusive possession by the tenant generally means it is not your "home." Retaining empty: Risky. An empty property that you could return to at any time may still be treated as a "home" under the SRT. HMRC could argue you have UK accommodation available to you.

UK Investments, ISAs & Bank Accounts

You do not need to close UK investment accounts, ISAs, or bank accounts when you leave. ISAs remain open and tax-free — you simply cannot make new contributions while non-resident. UK bank accounts can remain open, and most UK banks allow non-residents to maintain accounts (though some may restrict certain products). Interest from UK banks is generally tax-free for non-residents under ITA 2007 s.811. UK share portfolios can be maintained, but be aware that dividends from UK companies are paid without withholding tax and will only be taxable in the UK if you are UK resident — as a non-resident, UK dividends are generally outside UK tax.

If you hold appreciated shares or investments that you plan to sell, consider whether to sell them before or after departure. Selling before departure means paying UK CGT at 24% but with certainty. Selling after departure as a non-resident means no UK CGT (unless the assets are UK property-related), but the TNR rules could claw back the gain if you return within 5 years. The right approach depends on your plans for returning to the UK.

HMRC Notification

You should notify HMRC of your departure by completing Form P85 (Leaving the UK — Getting your tax right). This form tells HMRC your departure date, reason for leaving, expected return date, details of any UK income that will continue, and UK property information. Submitting P85 does not legally determine your residence status — that is always determined by the SRT — but it allows HMRC to update your records, issue any in-year tax refund, and set expectations for future filing obligations.

Document Checklist for Departure

Before you leave, ensure you have assembled the following: copies of your employment contract with your Dubai employer (confirming full-time hours, start date, and duties); evidence of your UK home disposal or tenancy agreement; your UAE residence visa application or confirmation; records of all UK ties that will remain after departure (for SRT day-count planning); tax certificates from India, Singapore, and Europe for 2025/26 and any earlier years where DTR is still being claimed; records of all pension contributions, ISA contributions, and EIS/SEIS/VCT investments made in 2025/26 and 2026/27; and a day-by-day log template for tracking UK presence from your departure date onwards. We can provide you with a structured day-count tracker as part of our service.

12. Making Tax Digital, Compliance & Next Steps

Does MTD Apply to You?

Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) is being rolled out from 6 April 2026. The first phase applies to individuals with combined gross income from self-employment and/or UK property rental exceeding £50,000. This threshold reduces to £30,000 from April 2027 and £20,000 from April 2028.

It is crucial to understand what income types are and are not in scope. MTD ITSA applies only to self-employment income (sole trader profits) and UK property rental income. It does not apply to: employment income, dividends, bank and building society interest, investment income, foreign employment income, capital gains, or pension income.

If MTD does apply, it requires the use of MTD-compatible software to submit quarterly summary updates of income and expenses (Q1: 6 April–5 July, due 7 August; Q2: 6 July–5 October, due 7 November; Q3: 6 October–5 January, due 7 February; Q4: 6 January–5 April, due 7 May). After year-end, an End of Period Statement finalises each business's figures, followed by a Final Declaration covering all income sources — deadline 31 January following the tax year end.

Your 2025/26 Tax Return

You mentioned that your current accountant will complete your 2025/26 tax return, due by 31 January 2027. Given the complexity of your affairs — particularly the foreign income from multiple jurisdictions, the need to accurately claim double taxation relief, and the interaction with the post-April 2025 rules (including the new FIG regime and the worldwide arising basis) — we would strongly recommend that you ensure your current accountant has specific expertise in international tax matters. The 2025/26 return is the last "straightforward" year before the Dubai move adds another layer of complexity.

If there is any doubt about your current accountant's international tax capability, it may be worth having the return reviewed by a specialist before submission. Errors in DTR claims, failure to report foreign income correctly, or incorrect application of the post-April 2025 rules could result in HMRC enquiries and significant penalties. We would be happy to review the return before submission as an additional service.

Transition to LOYALS for 2026/27 Onwards

For the 2026/27 tax year — the year of your potential Dubai relocation — the complexity increases dramatically. This return will need to deal with: Split Year Treatment claims under Case 1 of Schedule 45; SA109 (Residence, Remittance Basis etc.) supplementary pages; cessation of UK employment; commencement of overseas employment; the precise split of worldwide income between the UK and overseas parts of the year; DTR claims for multiple jurisdictions; potential re-classification of foreign income sources; and possible Non-Resident Self Assessment obligations going forward.

This is exactly the kind of complex, internationally-flavoured tax return that LOYALS specialises in. Our fee for preparing your 2026/27 Self Assessment tax return — including all supplementary pages, residence analysis, DTR claims, Split Year Treatment workings, and HMRC correspondence — is £600. This includes:

Summary of Recommended Actions

Immediate (March 2026): Confirm the Dubai offer. Submit your notice. Contact LOYALS to begin planning. Confirm your exact UK residence history so we can determine FIG eligibility. Provide details of the European country and your property portfolio.

Before 5 April 2026: Maximise pension contributions using carry forward. Make ISA, EIS, SEIS and VCT investments for 2025/26. Realise any capital gains to use the £3,000 annual exempt amount.

April 2026 – Departure: Repeat the investment strategy for 2026/27. Arrange UK property (sell, let, or manage). Begin documenting UK ties and keeping a day-count log. Set up UAE arrangements.

On Departure (March 2027): Complete Form P85. Ensure no UK home available. Begin 16-day UK limit countdown. Start Dubai employment. Apply for UAE TRC after 180 days.

Post-Departure (2027–2032): File 2026/27 return with Split Year claim (LOYALS). Maintain non-residence. File non-resident returns as needed. Clear the 5-year TNR window by 2032/33. Consider timing of inherited asset disposals.

Long-Term (2032 onwards): TNR cleared. Consider staying for 10+ years for FIG eligibility on return. IHT tail expires based on prior UK residence years. Freedom to plan return or permanent non-residence.