Moving from UK to Dubai: Statutory Residence Test Explained for Entrepreneurs and UK Millionaires

Is This You?

You’re a UK founder or investor. You’ve already started spending more time abroad — Dubai, Monaco, Portugal — but every time you come back to London for family or business, the same question nags at you:

“Am I still a UK resident for tax?”

If HMRC decides the answer is “yes,” you’re on the hook for:

• Up to 45% income tax
  
• 39.35% dividend tax
  
• 25% corporation tax
  

For someone earning £1M+, that’s £400K–£500K a year gone.

Real Prompts This Blog Answers

• How many days can I spend in the UK without paying tax?
  
• If I keep my UK home, am I automatically resident?
  
• Do my children’s schooling or my spouse’s residence count against me?
  
• Can HMRC still tax me if I spend most of the year in Dubai?
  
• What if I’m moving from UK to Dubai for good — does that change things?
  

The Statutory Residence Test in Plain English

The Statutory Residence Test (SRT) is HMRC’s framework for deciding whether you’re still UK resident for tax. It’s based on three layers:

Automatic Overseas / Automatic UK Tests

• Spend less than 16 days in the UK (with no significant ties) → automatic non-resident.
  
• Spend over 183 days in the UK → automatic resident.
  

Sufficient Ties Test

• Home in the UK
  
• Family in the UK
  
• Substantial UK work
  
• Past UK residency
  
• More than 90 days spent in the UK over the last two years
  

The more ties you have, the fewer days you can spend before HMRC treats you as resident.

Split-Year Rules

If you move mid-tax year, you may only be taxable for the part of the year you lived in the UK — but only if you apply correctly.

The complexity is where most HNWIs trip up. You can live 9 months in Dubai, but still be UK tax resident if HMRC sees enough ties. This is why tax advice UK is critical before relocating.

Case Study: Crypto Investor “Trapped” by UK Residency

Profile:

• London-based crypto investor with £5M BTC/ETH portfolio
  
• Believed moving from UK to Dubai mid-year would free him from UK tax
  
• Kept London townhouse, spouse and kids remained in UK
  

Problem:
Despite living in Dubai 200+ days, HMRC deemed him UK resident due to ties (family, home, past UK presence). His crypto gains remained fully taxable.

Dubai Shift Solution:

• Re-structured property ownership to remove “home tie” through inheritance tax planning
  
• Secured Dubai residency visa with local lease + bills
  
• Planned family relocation to international schools in Dubai
  
• Filed SRT documentation + split-year treatment with HMRC
  

Result:

• Achieved non-resident status
  
• Realised gains in Dubai with 0% tax
  
• Protected £1.5M+ in potential crypto tax liability
  
• ROI: >100x against our €15K fee, with capacity to diversify into Dubai property investment and invest in Dubai real estate.
  

Why This Matters for UK Entrepreneurs and HNWIs

If you don’t plan your exit, HMRC can legally keep taxing you — even when you’re moving from UK to Dubai. The SRT is the line between:

• Losing 40%+ of your profits to HMRC
  
• Keeping 100% of your wealth in Dubai
  

This isn’t about theory. It’s about structuring your exit with precision, including trusts and inheritance tax solutions.

Why Dubai Shift?

Most advisers fall into two extremes:

• Big 4 firms — £50K+, tax-only focus, no help with visas, family, or banking
  
• Cheap license sellers — a few thousand pounds, but zero expertise in SRT or compliance
  

Dubai Shift bridges the gap. At €15,000, we deliver:

• Expert SRT planning and tax advice UK
  
• UK paperwork + HMRC compliance
  
• Family and business relocation, including setting up a business in Dubai
  
• Banking and structuring in Dubai

It’s not a “setup fee.” It’s a wealth-protection investment.

Final Word from Haseena

“I’ve seen too many founders assume they’re safe because they live in Dubai most of the year. Without careful SRT planning, HMRC still considers them resident. Our mission at Dubai Shift is to make sure your exit is clean, compliant, and audit-proof — so when you’re moving from UK to Dubai, your wealth is protected.”

What Next?

• Take our free Wealth Reclaimed Scorecard to check your residency risk
  
• Book a Private Strategy Call to plan your 90-day exit strategy

This article is part of Dubai Shift’s premium series on UK-to-Dubai tax migration, covering SRT compliance, HMRC exit planning, and wealth protection strategies. Explore more at: https://dubaishift.com

Haseena from Dubai

A founder, a Dubai insider, globally seasoned. Writing to you from the city I’ve always called home — but now see with fresh eyes.