Geopolitical tensions in the Gulf have seen expats returning to the UK en masse, sheltering from any further escalation in the region.
While a temporary return to the UK might be the safe option, it could be accompanied by some hidden tax risks.
A few extra weeks or months residing in the UK can trigger tax residency, bringing overseas earnings into HMRC’s tax net.
As the conflict is yet to be resolved, individuals might temporarily relocate back to the UK in the future, so it is important to understand the tax residency rules.
The UK’s Statutory Resident Test and split-year treatment
Under the current rules, the UK’s Statutory Resident Test (SRT) determines whether someone is classed as a UK tax resident.
The SRT process is complex, but the simplest rule is that spending 183 days or more in the UK during a tax year normally leads to tax resident status.
If someone has spent below 183 days in the UK, tax residency then depends on time spent in the UK alongside what ‘ties’ to the country they may have.
‘Ties’ to the UK might include whether an individual has family in the country, what their accommodation is during their stay and whether they work while in the country.
Where someone has previously had UK residency, they might become a UK tax resident in as little as 90 to 120 days in the country.
Expats returning to the UK may also qualify for split-year treatment.
While a person is typically either a resident or non-resident for a full tax reporting year, this might be divided if they leave or return to the UK partway through.
The tax year can be divided into a ‘UK resident portion’ and an ‘overseas portion,’ separating some foreign income from UK tax rules.
Exceptional circumstances for UAE residents
HMRC might recognise ‘exceptional circumstances’ when calculating tax residency, for those returning to the UK during a crisis.
This can apply to individuals unable to leave the UK due to issues outside of their control, including serious illness, sudden travel restrictions, natural disasters and war.
If HMRC recognises the circumstances as exceptional, they can ignore up to 60 days when calculating residency.
While this can be a beacon of hope for expats in difficult situations, HMRC’s consideration of ‘exceptional circumstances’ is very narrowly applied.
Expats must show their circumstances have genuinely prevented them from leaving the UK despite their best efforts to leave as soon as possible. HMRC must see evidence of a genuine obstacle to an individual returning overseas.
A potential stumbling block for those returning from the UAE is the Foreign, Commonwealth and Development Office (FCDO) travel advice.
Typically, exceptional circumstances have only applied when the guidance to citizens is ‘avoid all travel,’ but the current classification is standard ‘permitted/green’ travel status. The strict ‘advise against all but essential travel’ warning was officially lifted on 18 June 2026.
This means there is uncertainty over whether current evacuations from the UAE would qualify for relief under HMRC’s definition of exceptional circumstances.
With the conflict smouldering, individuals should regularly check the FCDO advice to evaluate whether future relocations from the UK could be exempt from prompting tax residency.
Speak to an accountant
Seeking professional advice can be useful for determining your tax position upon return to the UK.
HMRC decides tax residency based on multiple factors in the SRT, so outcomes can vary case by case.
As each person’s circumstances are wholly different, specialist advice can help clarify your unique position.
Where an individual has returned to the UK to escape a perilous situation, our specialists can help you gather evidence and prepare the strongest case to HMRC.
If you are unsure about how a return to the UK could affect your tax position, reach out to one of our experts.
