By Dubai Tax Resident Editorial Team · Last reviewed: October 2026
Split-year treatment divides the UK tax year in which you leave into a UK part and an overseas part, so that foreign income you earn after moving to Dubai is generally not taxed in the UK. It applies automatically if you meet one of the cases in HMRC’s rules, for example starting full-time work abroad or ceasing to have a UK home. The temporary non-residence rules work in the other direction: if you return to the UK within five years, certain income and gains you realised while abroad can be taxed when you come back.
Key facts
- Purpose: splits the year of departure into UK and overseas parts
- Precondition: UK resident for the whole tax year under the SRT, then non-resident the next year
- Leaver cases: full-time work abroad, partner of someone working abroad, ceasing to have a UK home
- How to claim: automatic if conditions are met; reported on the SA109 residence pages
- Temporary non-residence: applies if you return within five years
- Official guidance: HMRC RDR3
Why split-year treatment matters
Under the Statutory Residence Test, residence applies to the whole tax year from 6 April to 5 April. If you move to Dubai in, say, September, you may still be UK resident for that entire tax year. Without split-year treatment, the UK would tax your worldwide income for the full year, including salary or business profits earned in Dubai after you left.
The split-year cases for people leaving the UK
HMRC’s guidance RDR3 sets out three cases for leavers:
Case 1: Starting full-time work overseas
You start working full-time abroad, on average 35 hours a week, for a period that lasts at least until the end of the following tax year, and keep your UK days and UK workdays within the reduced limits for the rest of the year. The overseas part starts on the day you start working abroad.
Case 2: Partner of someone starting full-time work overseas
Your spouse or partner meets Case 1, and you move abroad to live with them. You must not have a UK home after you leave, or only one where you spend less time than in your overseas home, and you must keep within the UK day limits.
Case 3: Ceasing to have a UK home
You had a UK home at the start of the tax year and stop having any UK home during the year. You then spend fewer than 16 days in the UK for the rest of the year, and within six months of leaving you become resident in another country, have your only home there or are present there at the end of each day for six months. This is the typical case for people who sell or let their UK home and move to Dubai.
What split-year treatment does
- Employment income and foreign income from the overseas part of the year are generally outside UK tax.
- UK-source income, such as UK rent, remains taxable throughout.
- Capital gains have their own split-year rules, broadly following the same overseas part.
- Your personal allowance still applies for the full year if you are entitled to it.
You report your residence status and split-year claim on the residence pages (SA109) of your Self Assessment return. If you are not in Self Assessment, use form P85.
The temporary non-residence rules
These rules stop people leaving the UK for a short period to realise gains or extract income tax-free. They apply if:
- you had sole UK residence in at least four of the seven tax years before you left, and
- your period of non-residence is five years or less.
If both apply, certain income and gains you received while abroad are taxed in the tax year you return. This includes gains on assets you owned before you left, distributions from close companies such as your own UK company, certain pension lump sums and some offshore income gains. Income earned abroad from new work in Dubai is not affected.
Practical tips
- Time your departure: make sure the conditions of your split-year case are met, including the UK day limits after departure.
- Sell or let your UK home if you rely on Case 3, and keep evidence of when it stopped being your home.
- Plan large disposals and dividends: if you might return within five years, gains or dividends taken while abroad may be taxed later.
- Keep records: travel dates, work hours abroad and evidence of your Dubai home and visa. Our UK to Dubai moving guide covers the full process.
Leaving the UK mid-year?
We check which split-year case fits, plan your UK days and help you avoid the temporary non-residence trap.
Frequently asked questions
Split-year treatment divides the UK tax year in which you leave or arrive into a UK part and an overseas part, so foreign income from the overseas part is generally not taxed in the UK.
It applies automatically if you meet one of the cases, but you report it on the SA109 residence pages of your Self Assessment return, or tell HMRC with form P85 if you are not in Self Assessment.
Usually Case 1 if you start full-time work abroad, Case 2 if you join a partner working abroad, or Case 3 if you stop having a UK home and settle in Dubai within six months.
Case 3 requires you to stop having any UK home. Cases 1 and 2 can apply while you still have a UK property, but the conditions on UK days and homes must be met.
If you were UK resident in four of the seven years before leaving and return within five years, certain gains and income realised while abroad, such as gains on assets held before leaving and close company dividends, are taxed when you return.
No. Employment income earned from work in Dubai while you are non-resident is not caught. The rules target gains on assets held before leaving and certain income such as close company distributions.
Your period of non-residence must be more than five years. If you return within five years, the rules can apply to income and gains realised during your time abroad.
No. UK-source income such as rent from UK property remains taxable in the UK for the whole year and afterwards, whatever your residence status.
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Disclaimer: This article provides general information only and is not tax advice. Split-year conditions are detailed; check HMRC guidance RDR3 or consult a qualified UK tax adviser.