Wealthy British nationals fleeing conflict in the Gulf are choosing to seek sanctuary in Ireland and France rather than returning to the UK, in order to avoid triggering hefty tax liabilities. With the end of the financial year just weeks away, many high-net-worth individuals who had been living in the United Arab Emirates and neighbouring countries have already used up their permitted days in Britain without becoming tax resident.
Under UK tax rules, the number of days an individual can stay in the country depends on their ties to the UK, such as accommodation, a spouse or children. For many who left in recent years, the limit is as low as 45 days. Exceeding this can mean their worldwide income and investment gains become taxable in the UK, and for those who have been non-resident for fewer than five years, capital gains tax on assets sold during their absence could also apply.
Some expats have sought guidance from HM Revenue and Customs on whether they would be granted 60 extra days under an 'exceptional circumstances' provision, similar to that allowed during the Covid-19 pandemic. However, tax advisers warn this is unlikely to apply. Nimesh Shah, chief executive of Blick Rothenberg, said: 'I’ve told them not to rely on any exceptional circumstances provisions from HMRC. I can’t imagine HMRC are very sympathetic here.'
One very wealthy business owner told the Guardian he was spending time in Dublin until after 5 April, when the 2025-26 tax year ends. 'I’m happy to pay income tax and tax on investments next tax year, but I don’t want the sale of a business that I sold years ago to fall within UK capital gains tax,' he said. Another British UAE-based business owner said they would spend some time in France for now.
David Little, a partner at Evelyn Partners, noted that even a few extra days in Britain could have major consequences, with gains from years ago 'retrospectively falling under UK taxation on their return'. The UK government's travel advice for affected countries such as Bahrain advises against 'all but essential travel', but HMRC's exceptional circumstances provision only applies if the Foreign Office advises 'no travel' at all.
