Residence
Decided by the statutory residence test for each tax year (6 April to 5 April). Non-residents do not pay UK tax on foreign income.
Ask your adviserWill I be UK resident in each tax year I own the property?
Rental income
UK residents normally pay Income Tax on foreign income, including overseas rent, reported in the foreign section of Self Assessment.
Ask your adviserAfter handover, how do I report the rent and what can I deduct?
Capital gains
CGT can apply to overseas property that is not your main home. GOV.UK gives rates of 18% and 24% for gains from 6 April 2026, and a £3,000 annual exempt amount.
Ask your adviserHow would a sale be calculated, including costs and currency movements?
Inheritance Tax
Since 6 April 2025 the test is long-term UK residence: 10 of the previous 20 years. A long-term resident’s overseas assets may be within IHT, and the status can last up to 10 years after leaving.
Ask your adviserIs my UAE property within my UK estate, now and if I leave the UK?
Double taxation
The UK–UAE convention has applied since 25 December 2016. The UAE may tax UAE property income and gains, and UAE tax paid is credited against UK tax.
Ask your adviserIs any UAE tax actually charged, and what credit could I claim?
FIG regime
Since 6 April 2025 the remittance basis is replaced by a 4-year regime for people new to the UK after at least 10 years abroad. Claiming costs that year’s allowances.
Ask your adviserDo I qualify, and would a claim actually help?
UAE side
Under Cabinet Decision No. 49 of 2023, an individual’s income from selling or letting UAE property without needing a licence is not a business activity for UAE Corporate Tax.
Ask your adviserIs any UAE tax due on my rent or a sale, and how does that affect my UK return?
Owning UAE property, or holding a UAE residence permit, does not by itself make you non-UK resident or remove your UK reporting. Your UK status is decided each year by the statutory residence test. Take your plans to a UK-qualified adviser before assuming any change.