Budget 2026: what it means if you are leaving for Dubai
The Budget on 28 October 2026 was a quiet one for people leaving the UK, and that is the news. There is no exit tax. The rules that decide when your UK tax stops are the same as they were. What changed is the tax on two things many leavers keep or sell: a let property and a business. This guide sets out what was announced, as at November 2026, from the government’s own Budget document and its overview of tax legislation and rates.
Everything dated April 2027 below was announced at Budget 2026 and is to be legislated in Finance Bill 2026-27. It is not yet law, and details can move before it is.
Budget 2026 for UK leavers: what changed
| What changed | From when | Who it affects |
|---|---|---|
| Rent taxed at separate property rates of 24%, 44% and 49% (now 20%, 40% and 45%) | 6 April 2027, announced, not yet law | Anyone letting UK property, wherever they live |
| Savings interest taxed at 24%, 44% and 49% | 6 April 2027, announced, not yet law | Savers who pay UK tax on interest |
| Business Asset Disposal Relief lifetime limit cut from £1 million to £500,000; rate stays 18% | Disposals on or after 6 April 2027, announced, not yet law | Owners selling a business while UK resident, or caught by the five-year rule |
| Founders’ Relief: 10% on up to £10 million of lifetime gains | Disposals on or after 6 April 2027, announced, conditions under consultation | Qualifying founders of high-growth, innovative companies |
| Voluntary Class 3 National Insurance rises from £18.40 to £19.05 a week | 6 April 2027, by regulations | Leavers topping up their State Pension record |
| Pension death benefits no longer taxed only because they were paid more than two years after the scheme learned of the death | Payments from 28 October 2026, announced, not yet law | Families of pension holders |
Sources: overview of tax legislation and rates and its rates annex.
What did not change
- No exit tax. Leaving the UK still does not treat your shares, crypto or business as sold (is there a UK exit tax?).
- The Statutory Residence Test and split-year treatment. Same day counts, same ties, same cases. The residency checker and the day allowance calculator work as before.
- The five-year rule. Temporary non-residence still pulls gains and some income back if you return within five years.
- The inheritance tax tail. The Budget made no change to the long-term resident rules, and unused pension funds still join the estate from 6 April 2027, which is already law.
- The headline rates. Income tax stays at 20%, 40% and 45% with a £12,570 personal allowance. Dividends stay at 10.75%, 35.75% and 39.35%. Capital gains tax stays at 18% and 24% (rates annex).
One sentence in the Budget document is worth knowing about. The government says it will keep assessing whether the residence-based regime strikes the right balance, with evidence due next year. That is a review, with no proposal attached.
If you keep a UK property and let it
Rent from UK property stays taxable in the UK after you move, and British citizens keep the personal allowance against it. The change is the rate. For 2026-27 rent is taxed at 20%, 40% and 45%. From 6 April 2027 it is due to be taxed at 24%, 44% and 49% in England, Wales and Northern Ireland.
Worked example. A landlord in Dubai makes £30,000 a year of rental profit and has no other UK income. After the £12,570 allowance, £17,430 is taxable. At 20% that is £3,486 for 2026-27. At 24% it would be £4,183 for 2027-28.
What the Budget documents do not settle is what your letting agent withholds under the Non-Resident Landlord Scheme from April 2027, so we are not quoting a figure for that. How the scheme works now is in how UK rental income is taxed once you live in Dubai.
If you are selling a business around the move
Business Asset Disposal Relief taxes a qualifying gain at 18%. Until 5 April 2027 it covers up to £1 million of gains over your lifetime. For disposals on or after 6 April 2027 that is due to fall to £500,000, with special provisions for contracts made before that date and completed after it.
Worked example. A founder sells while UK resident and makes a £1,000,000 gain that qualifies in full. She is a higher rate taxpayer, and the annual exempt amount is left out to keep the sums clear.
| Sale completes | Tax on the gain |
|---|---|
| Before 6 April 2027 | £180,000: all £1,000,000 at 18% |
| On or after 6 April 2027 | £210,000: £500,000 at 18% and £500,000 at 24% |
Founders’ Relief could change the second row for some people, at 10% on up to £10 million. Its conditions are under consultation until 30 November 2026, and any Business Asset Disposal Relief used from 6 April 2027 reduces the Founders’ Relief limit. Until the rules are final, nobody should plan on qualifying.
None of this touches the other route. A sale made after you have become non-resident is generally outside UK capital gains tax, provided you stay non-resident for more than five years. Which order suits you turns on your dates, your buyer and how sure you are of staying away. Selling your UK business before Dubai covers the choice.
If neither applies to you
For most leavers on a salary or running a UAE company, nothing in this Budget moves the plan. Three smaller points:
- Voluntary National Insurance. Class 3 goes from £18.40 to £19.05 a week in 2027-28. Over 52 weeks that is £956.80 rising to £990.60. Who can pay from abroad is in voluntary contributions from Dubai.
- A UK home worth £2 million or more. A council tax surcharge on high-value homes is due from April 2028. It was announced at Budget 2025 and is to be legislated in Finance Bill 2026-27.
- UK savings. Interest that is taxable in the UK is due to be taxed at the higher savings rates from 6 April 2027.
What turns on your facts
Whether any of this changes what you do depends on things only you know: when you plan to leave, whether you might come back within five years, what you own and what you intend to sell. The general rules are in UK tax after moving to Dubai. For your own position, start with the residency checker, then talk to us.
How we help
Our UK and UAE tax service plans the departure date, the order of any sale and the first non-resident return with a UK-registered tax adviser. If you have already left, the Clean Break Review checks your position against the rules as they now stand.
Questions people ask
Did Budget 2026 introduce a UK exit tax?
No. The Budget of 28 October 2026 has no exit tax, settling-up charge or deemed disposal for individuals who leave the UK. The only exit charge measure is an easement for trusts. The government did say it will keep assessing whether the residence-based regime strikes the right balance, so the question is not closed for good.
Does Budget 2026 change how many days I can spend in the UK?
No. The Budget made no change to the Statutory Residence Test, its day counts or its ties, and none to split-year treatment. Your limit still depends on your UK ties and on whether you were UK resident in any of the previous three tax years.
How will my UK rental income be taxed after April 2027?
From 6 April 2027 rent from UK property is due to be taxed at separate property rates of 24%, 44% and 49% in England, Wales and Northern Ireland, in place of 20%, 40% and 45%. This was announced at Budget 2026 and is to be legislated in Finance Bill 2026-27. It applies to non-resident landlords as it does to UK residents.
What happens to Business Asset Disposal Relief in April 2027?
The rate stays at 18%, but the lifetime limit on gains that qualify is due to fall from £1 million to £500,000 for disposals on or after 6 April 2027. This was announced at Budget 2026 and is to be legislated. Gains above the limit are taxed at the normal capital gains tax rates.
What is Founders' Relief?
A new capital gains tax relief announced at Budget 2026: a 10% rate on up to £10 million of lifetime gains for qualifying founders of high-growth, innovative companies, for disposals on or after 6 April 2027. The conditions are under consultation until 30 November 2026, so nobody can yet say who will qualify.