AUTUMN BUDGET 2024 – A BOON FOR LONG TERM EXPATS?

Andy Wood • November 27, 2024

Introduction

A city skyline overlooking a body of water at sunset.
The UK’s March 2024 Budget introduced sweeping reforms to the taxation of “non-doms,” with confirmation from the new Labour Government in the Autumn Budget that these changes would proceed in largely the same form.
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However, there has been less discussion about how these changes will affect individuals with a UK background, particularly British ex-pats. 


The proposed changes, set to come into effect on 6 April 2025, present opportunities for British ex-pats living around the world. 


While some technical details could still evolve, the draft legislation released on 30 October provides clarity on the framework. This note explores the implications for British ex-pats under the new regime. 


Key Features of the New Regime for British Ex-Pats (Effective 6 April 2025) 

Special Four-Year Tax Regime for Returning Residents 

Qualifying individuals will be exempt from UK tax on their foreign income and gains for their first four years of residence, regardless of whether such income is remitted to the UK. 

Eligibility applies to anyone who becomes UK resident after at least ten tax years of non-UK residence, irrespective of their domicile. 

New Residence-Based Test for Inheritance Tax (IHT) 

Domicile will no longer determine liability for IHT. Instead, individuals will be subject to IHT on worldwide assets after being UK resident for 10 out of the previous 20 tax years. 

If they subsequently leave the UK, their estates will remain subject to IHT for a “tail period” of 3–10 years, depending on their duration of UK residence. 

Favourable Transitional Rules for Current Non-Residents 

Individuals who are non-UK resident during the current tax year and were not UK domiciled on 30 October 2024 can benefit from transitional provisions that shorten the IHT “tail.” 

Planning Points for British Ex-Pats 

Returning to the UK 

Under the current regime, individuals born in the UK with a UK domicile of origin are immediately deemed UK domiciled upon becoming UK resident, making their worldwide income and gains subject to UK tax. 

The new rules change this dynamic: 

  • Those returning to the UK after ten years of absence can take advantage of the special four-year tax regime, exempting non-UK income and gains from tax. 
  • This presents a favourable window for British ex-pats to return temporarily—for example, to care for elderly parents, settle children in UK schools, or manage tax planning in another jurisdiction. 

The UK’s statutory residence test, while complex, offers clear guidance on residence status, enabling individuals to determine their first year of residence and plan their eventual departure if desired. 

Increased Certainty Around IHT 

The current system ties IHT liability to domicile, which can be difficult for globally mobile individuals to establish. Even after decades of living abroad, a UK domicile of origin can persist if the individual has not formed a permanent intention to remain elsewhere. 

The new residence-based IHT test provides clarity: 

  • Individuals who have been non-UK resident for 10 years by 6 April 2025 can benefit from the change immediately, gaining certainty over the IHT treatment of their non-UK assets. 
  • Those non-UK resident for less than 10 years by that date will face transitional uncertainty, as the new rules apply only to those with a non-UK domicile on 30 October 2024. 

Opportunities to Create Trusts and Structures 

The new IHT regime has significant implications for trust creation and other estate planning structures: 

  • Under current rules, transferring assets to a trust by a UK-domiciled individual triggers immediate and ongoing IHT liabilities, creating risks for ex-pats with uncertain domicile status. 
  • From 6 April 2025, certainty around IHT treatment will enable non-UK residents to create trusts and similar structures without the risk of upfront IHT charges, supporting succession planning and asset protection. 

However, ongoing IHT risks remain: 

  • Trusts established outside the scope of IHT may later fall within it if the settlor resumes UK residence and meets the 10/20 residence test. Careful monitoring will be required. 

Need for Expert Advice 

While the proposed regime simplifies certain aspects of the tax rules, expert advice remains essential for individuals returning to the UK. 

The new rules bring potential tax implications for corporate, trust, and other structures, making pre-arrival planning crucial. 

It is also important to note that UK-based assets and assets linked to UK residential property will remain within the scope of IHT, regardless of residence status. 

Conclusion 
The new regime introduces welcome clarity and opportunities for British ex-pats, particularly in terms of temporary UK returns and estate planning. 

However, careful planning is necessary to maximise benefits and mitigate risks under the new rules. 

Final Thoughts 
If you have any queries about this article on the new UK tax regime for ex-pats or tax matters more generally, then please get in touch.


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Why Wealth Managers Are Moving to Dubai: What It Means for You

June 12, 2025
If you’ve been hearing more about private banks, investment advisers, and wealth managers setting up shop in Dubai, you're not imagining it. Dubai has become one of the fastest-growing wealth hubs in the world, especially for British and European advisers. In the last year alone, over 60 new wealth management firms have opened offices in Dubai’s International Financial Centre (DIFC). But why is this happening, and what does it mean if you're a high net worth individual , entrepreneur, or investor living in the UAE? Why Dubai? Dubai offers something many wealth managers are now struggling to find elsewhere: a stable, tax-efficient , and business-friendly environment. While the UK has tightened its tax rules , especially for non-doms and those using trusts or complex structures, the UAE has continued to attract wealth with: 0% personal income tax No capital gains tax A strong legal framework under English common law (via DIFC) High quality of life and global connectivity For clients, this makes Dubai an appealing base. For wealth managers, it’s an opportunity they can’t ignore. What Wealth Managers Are Offering in Dubai With this surge in presence comes increased service availability for clients. If you're living in the UAE or spending part of the year here, you can now access: Discretionary investment management Estate and succession planning Family office services Tax-efficient structures and cross-border advice Advice on UK IHT (Inheritance Tax) and pensions These services used to be hard to find locally, but not anymore. Who's Coming to Dubai? The influx includes private banks and traditional discretionary fund managers, but also: Boutique investment firms Wealth tech platforms (offering digital tools for investing) Global tax advisers The DIFC now hosts more than 410 wealth and asset management firms, up from 350 the previous year. New entrants include British firms reacting to UK tax changes and seeking to serve their clients abroad. Why It Matters to UAE Residents If you’re based in the UAE, especially as a British expat or someone with international assets, this is a golden opportunity to get high-quality wealth advice locally. Key reasons to take action now: UK tax changes are affecting British expats Inheritance planning is more important than ever The local market now has more competition, which often leads to better client service You no longer need to fly to London or rely on Zoom calls to manage your finances; top-tier advice is available here in Dubai. Questions You Should Be Asking Is my current investment portfolio set up for UAE tax rules? How will UK inheritance tax apply to my estate? Should I structure assets through an offshore trust or foundation? Is my UK pension protected and efficient? Could I benefit from working with a local adviser who understands both the UAE and UK systems? Final Thoughts Dubai is no longer just a luxury destination or business stopover; it’s now a full-fledged global wealth centre. With top international firms setting up operations here, clients in the UAE now have access to world-class advice right on their doorstep. Whether you’re planning for retirement, protecting family wealth, or exploring new investment opportunities, this is a perfect time to act. At Mosaic Chambers Group, we specialise in helping UAE-based clients structure, grow, and protect their wealth. From inheritance planning to UK tax exposure, our team of dual-qualified advisers can offer practical advice with no jargon. Contact us today to book a confidential conversation with one of our experienced UAE wealth advisers.

Future-Proofing Your Finances: UAE Workers Call for Stronger Pension Options

June 10, 2025
We all think about the future, but how many of us feel confident about our retirement savings? In the UAE, that question is becoming more urgent. A new report shows that more people in the UAE, especially experienced employees and professionals, are asking for better, more personalised retirement planning. They don’t just want end-of-service benefits. They want flexibility, investment choices, and long-term financial security. This shift is important. It’s not just about pensions . It’s about how people feel about their jobs, their financial freedom, and their lives after work. What the Report Found The research, carried out by recruitment experts in the UAE, found that: Many mid-to-senior-level professionals now want a tailored approach to retirement savings. People are asking employers for more investment options, not just a lump sum at the end. There is a growing interest in structured retirement accounts, including schemes where employers contribute monthly, like pensions in the UK or US. It’s a signal that the typical end-of-service benefit (gratuity) may no longer be enough for the modern workforce. The Current Retirement Model in the UAE Right now, most private sector workers in the UAE receive an End-of-Service Benefit (EOSB). This is a lump sum based on how long you've worked for your employer and your final salary. But: It’s not invested, so the value doesn’t grow with time. You only receive it when you leave the company. If a company closes down or faces financial trouble, you may lose out. While the UAE has made improvements, such as introducing savings-style EOSB schemes, many companies still use the traditional model. Why Employees Are Asking for More Here are just a few reasons UAE professionals want better retirement planning: 1. Job Security Is Less Certain People change jobs more often than they used to. Relying on a lump sum after years of service isn’t practical for mobile careers. 2. Higher Earnings = Higher Expectations Professionals in sectors like tech, finance, and consulting are earning more, and they want retirement planning to match their income and ambitions. 3. Inflation and Cost of Living Even in a tax-free environment, the long-term cost of living matters. A static lump sum at the end of your career doesn’t keep up with real-world inflation. 4. More Global Workers Many people in the UAE have worked in multiple countries. They’re familiar with international pension schemes, and they want similar options here. What Are the Alternatives? Several companies and free zones in the UAE are already offering new models for retirement planning: Monthly savings schemes with employer contributions Access to regulated investment funds tailored to retirement Portable savings accounts that follow you between jobs Dubai International Financial Centre (DIFC) launched the DIFC Employee Workplace Savings (DEWS) Plan, which has been a model for reform. Other areas may follow suit. What You Can Do Whether your employer offers advanced schemes or not, you can still take control of your retirement plan: Start a private pension or regular investment plan with expert advice Set up a monthly savings goal, even if it’s small to start Ask your employer if they’re willing to make monthly contributions Consider tax and currency implications if you plan to retire abroad Final Thoughts The way people think about retirement in the UAE is changing, and fast. It’s no longer about waiting for a lump sum and hoping it’s enough. UAE residents want to invest, plan ahead, and build financial independence while they’re still working. If you're living and working in the UAE, the best time to plan for retirement isn't when you're 60. It’s now! We help people across the UAE, UK and other jurisdictions set up private pension plans, understand retirement investments, and structure savings that work whether you retire in Dubai, UK or move abroad. Speak to one of our advisers today for clear, practical help with your long-term planning.
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