Could returning to the UK trigger a tax bill? What expats returning from the Middle East need to know
HMRC is reportedly examining whether tax concessions could be introduced for Britons forced to return due to instability in the region
David Little, Financial Planning Partner at Evelyn Partners, the UK wealth manager, comments:
“For British expats residing in the Gulf, a temporary return to the UK to escape the conflict might feel like a safe move but it could come with a hidden tax cost. Spending just a few extra weeks on home soil could trigger UK tax residency, potentially bringing overseas income and wider wealth under the microscope of HM Revenue & Customs.
“With the conflict in Middle East, thousands of Britons are understandably debating whether to return home for safety or family reasons. While HMRC is reportedly considering extending its ‘exceptional circumstances’ provision to those returning home, potentially offering temporary flexibility, the rules are complicated and no formal changes have been announced yet. This is why understanding the rules is important, even at a time of stress and upheaval.”
Here, David Little outlines the current state of play and what changes could be considered for returning expats.
How the current rules work
The UK’s Statutory Residence Test (SRT) is complex and crucially determines whether someone is classed as a UK tax resident. The simplest rule is that anyone who spends 183 days or more in the UK during a tax year automatically becomes a UK tax resident. But there are key caveats.
Below the 183-day threshold, residency depends on both the number of days spent in the UK and an individual’s ”ties” to the country. These include having family in the UK, where you are accommodated while in the UK, and of course whether you are working while in the country.
For someone who has previously lived in the UK, tax residency can potentially be triggered with as few as 90 to 120 days in the country if they maintain multiple ties, which is common. Expats who carefully plan their travel can inadvertently cross the threshold if forced to spend more time in Britain than intended, something that is very relevant in the current unpredictable climate.
Split-year treatment
Expats returning to the UK may qualify for split-year treatment. Normally, a person is either resident or non-resident for a full tax year (April 6 - April 5). But if someone leaves or returns partway through the year, the tax year can be divided into a “UK resident portion” and an “overseas portion”, potentially keeping foreign income outside the UK tax net.
Split-year treatment is not automatic: it must be claimed via a Self-Assessment tax return using the SA109 residence pages, similarly those leaving the UK permanently must notify HMRC using form P85. Expert tax advice is essential here to avoid creating an unexpected tax liability.
The Circumstances and the Treatment:
Beginning to establish a home solely in the UK | Income and gains become taxable from the date this situation arises; anything accrued before that point remains non‑taxable. |
Starting full-time work in the UK | Taxation applies only from the start date of full‑time UK work, with income and gains prior to that point not subject to tax. |
The individual stops working full‑time overseas, having been non‑UK‑resident in the previous tax year due to full‑time work abroad, and having been UK‑resident in one or more of the four tax years before that. | Taxation applies from the point at which the individual ceases full‑time overseas work, with income and gains prior to that date remaining outside the tax net. |
Partner of someone ceasing full-time work overseas | Taxation applies only from the individual’s arrival date in the UK; income and gains generated prior to that date are not taxable. |
Starting to have a home in the UK and continues to have this home until the end of the next tax year. | Taxation applies from the point at which the individual acquires their UK home, with earlier income/gains remaining outside the tax net. |
Exceptional circumstances
A potential lifeline for expats returning during a crisis is HMRC’s “exceptional circumstances” provision. Up to 60 days spent in the UK can be ignored when calculating residency if an individual is unable to leave due to events beyond their control, such as war, civil unrest, natural disasters, or sudden travel restrictions.
Relief under this provision is, however, very narrow. Individuals must show the circumstances genuinely prevented them from leaving the UK and that they intended to depart as soon as possible. The devil is in the detail: are they genuinely prevented from returning to the UAE or other Gulf states?
Could HMRC relax the rules?
Recent reporting suggests officials may be considering temporary flexibility. HMRC is examining whether tax concessions could be introduced for Britons forced to return due to the war in the Middle East.
No formal changes have yet been announced, meaning the current rules (Statutory Residence Test) still apply. In simple terms, each day spent in the UK counts towards the residency quota.
The UAE complication
A key uncertainty is official travel advice. The exceptional circumstances rule has historically been applied when the Foreign, Commonwealth and Development Office advises citizens to “avoid all travel”. The UAE currently sits at the lower warning level of “all but essential travel”. Crucially, these are not equivalent.
This distinction leaves significant ambiguity over whether evacuations or safety-related returns from the UAE would qualify for relief under the exceptional circumstances provision. Giving the current situation in the UAE with drone and missile strikes, time is of the essence regarding this rule complication, as those looking to exit will need HMRC clarity fast.
Why planning matters
For globally mobile individuals, even a few extra days in Britain can have major consequences. Becoming UK tax resident could mean that worldwide income and investment gains become taxable, not just UK-sourced earnings.
Furthermore, for those who have left the UK and then sold assets, businesses, or crystallised gains while non-resident: the current HMRC rules expect them to remain non-resident for five complete tax years. Returning to the UK, albeit unexpectedly and unplanned, could trigger an expensive tax liability with previous forgotten gains from a few years ago retrospectively falling under UK taxation.
Until HMRC issues any clarification, expats considering temporary returns should carefully monitor their UK days and ties, plan travel around thresholds, and file appropriate forms to claim split-year treatment where relevant. As always, seek professional advice.
Small changes in travel behaviour can be the difference between remaining outside the UK tax net and falling fully within it, a situation often reduced to a ‘health versus wealth’ dilemma, with no easy outcome.
About Evelyn Partners
Evelyn Partners was created in 2020 through the merger of Tilney and Smith & Williamson. With £68.6 billion of assets under management (as at 31 December 2025), we are one of the largest UK wealth managers ranked by client assets.
Through an extensive network of offices across 21 towns and cities in the UK, as well as the Republic of Ireland and the Channel Islands, we support private clients, family trusts and charities, as well as provide investment solutions to financial intermediaries. Our diverse client base includes entrepreneurs, C-suite executives and partners of professional firms.
Our expertise span both award-winning financial planning and investment management, enabling us to offer clients a truly holistic dual expert wealth management service. Through Bestinvest, we also provide an online investment platform and coaching service for self-directed investors, consistent with our purpose to ‘place the power of good advice into more hands’.