UK Non-Dom Abolished: What the New Rules Mean If You Move to Dubai

By Dubai Tax Resident Editorial Team · Last reviewed: October 2026

The UK abolished the non-dom regime on 6 April 2025. The remittance basis was replaced by a four-year foreign income and gains (FIG) regime for new arrivals, and inheritance tax now depends on long-term UK residence rather than domicile. Anyone who has been UK resident for at least 10 of the previous 20 tax years is exposed to UK inheritance tax on worldwide assets, and that exposure continues for between 3 and 10 years after leaving. For many former non-doms and long-term UK residents, these changes are a key reason to consider moving to Dubai.

What was the non-dom regime?

For more than two centuries, UK residents who were not domiciled in the UK could choose the remittance basis. They paid UK tax on UK income and gains, but on foreign income and gains only if they brought the money into the UK. Non-doms were also outside UK inheritance tax on non-UK assets until they became deemed domiciled after 15 years of residence.

What changed in April 2025?

The new FIG regime

From 6 April 2025, people who become UK resident after at least ten consecutive tax years of non-residence can claim full relief on foreign income and gains for their first four years of UK residence. After that, they are taxed on worldwide income and gains like any other UK resident. Former remittance basis users who do not qualify are taxed on newly arising foreign income and gains in full.

The Temporary Repatriation Facility

Former remittance basis users can bring foreign income and gains that arose before 6 April 2025 into the UK at a reduced rate: 12% for the 2025/26 and 2026/27 tax years and 15% for 2027/28. After the facility closes on 5 April 2028, remittances of old untaxed income are taxed at normal rates. See HMRC helpsheet HS264 on GOV.UK.

Residence-based inheritance tax

Domicile no longer decides inheritance tax. Instead, a long-term UK resident, meaning someone resident for at least 10 of the previous 20 tax years, is within UK inheritance tax on their worldwide assets at 40% above the available allowances. HMRC’s guidance is available on GOV.UK.

The IHT tail after leaving

When a long-term resident leaves the UK, they remain within worldwide UK inheritance tax for a “tail” period. The tail is at least 3 years for someone resident for 10 to 13 of the last 20 years, rising by one year for each additional year of residence, up to 10 years for people resident for 20 years. Special transitional rules apply to people who were already non-resident before 6 April 2025.

Trusts

Excluded property trust protection now depends on the settlor’s long-term residence status. Assets settled into trust can become subject to inheritance tax charges while the settlor is a long-term resident, which has prompted many families to review their structures.

Why the changes push people towards Dubai

• No personal tax on worldwide income: the UAE does not tax salaries, dividends, interest or private capital gains (see is Dubai tax-free?).
• No inheritance tax: once the UK tail period ends, non-UK assets fall outside UK inheritance tax, and the UAE has none of its own.
• Proximity and lifestyle: a seven-hour flight, an English-speaking environment and established British communities.
• Long-term residency: the 10-year Golden Visa offers stability for investors and their families.

Planning a move after the non-dom changes

1. Count your UK residence years over the last 20 tax years to know whether you are a long-term resident and how long your IHT tail would be.
2. Review the Temporary Repatriation Facility before it closes if you have untaxed pre-2025 foreign income or gains.
3. Check your UK non-residence under the Statutory Residence Test from the year you leave.
4. Watch the temporary non-residence rules if you might return within five years.
5. Review trusts and wills, including a UAE will for assets held in the UAE.
6. Build a solid UAE position with a residence visa, home and, if useful, a UAE Tax Residency Certificate.

Frequently asked questions

Disclaimer: This article provides general information only and is not tax or legal advice. The post-2025 UK rules are complex, with transitional provisions; consult a qualified UK tax adviser before acting.