UK tax changes to affect British expats in UAE from 2027
Property income tax rates on UK rentals will rise, while tax-free savings allowances remain unchanged for British expatriates.
At a glance
- Property income tax rates on UK rentals rise by two percentage points from April 2027
- Basic rate increases to 24%, higher rate to 44%, additional rate to 49%
- £20,000 annual tax-free ISA allowance retained for returning expats
- Changes apply in England, Wales and Northern Ireland
British expatriates in the United Arab Emirates face higher taxes on UK rental income starting April 2027, following changes announced in the UK Budget. Property income tax rates will increase by two percentage points across all brackets, reaching 24% at the basic rate, 44% at the higher rate and 49% at the additional rate in England, Wales and Northern Ireland.
Meanwhile, the UK government has retained the £20,000 annual tax-free cash savings allowance for Individual Savings Accounts, which British expats will be able to access again once they become eligible to contribute. Tax advisers note the Budget's domestic focus is unlikely to significantly alter the long-term financial planning of many British expats in the region.
Why it matters
The tax changes directly affect British expatriates with financial ties to the UK, particularly those renting out properties or planning to return home.
Original reporting
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