Some clients moving back to the UK from the Middle East (or elsewhere) may be eligible for a tax break on some of their foreign income for up to four years – but they need to proactively claim it.
Last April, the UK introduced a new tax rule which means people moving there from abroad who qualify, depending on their previous UK tax residency, may not have to pay UK tax on certain foreign income and gains for up to four years.
If you qualify, it means eligible income from overseas jobs, businesses, or investments may not be subject to UK tax during the period. To qualify, you generally need to be a new UK resident and have been a non-UK resident for at least 10 consecutive tax years.
That means people moving back to the UK from the Middle East temporarily to escape the ongoing conflict, who have lived there for a long time, could avoid having to pay tax on their income from overseas. However, the benefit is not automatic – you have to meet certain conditions and actively claim it.
Alex Boothman, tax partner at Keystone Law, told International Adviser: “Since April 2025, eligible individuals moving to the UK may benefit from the new Foreign Income and Gains regime. This generous regime offers a four-year exemption from UK tax on non-UK income and gains.
“This relief is not automatic and must be claimed, so it is essential to check eligibility before moving. For those who do qualify, the relief can mean the UK offers a very attractive safe haven for those seeking a temporary relocation from the Middle East.
“After the regime expires, or for those who don’t qualify, UK tax generally applies to worldwide personal income and gains and may also apply to overseas trust and company structures,” he added.
“With careful planning, though, it may be possible for those returning on a temporary basis to structure their assets to defer taxable income and gains, helping to avoid significant tax bills whilst in the UK.”
