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UK citizen / Living in UAE - Looking for advice for future asset protection

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canford

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Aug 22, 2025
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HI all

I'm new here - first post ! (hopefully putting it in the right‌ place)

I am a UK national (and UK passport holder) - initially lived in UK‍ for 35 years (1983-2018), before moving to Singapore for 5 years (2018-2023) and now live⁠ in UAE (Abu Dhabi) since end 2023

I have been fortunate to earn good sums⁤ in my career and invest well over the years and now have 8 figures in⁣ savings and investments (my current net worth now circa £10mm gbp, ie $13-14mm usd)

Obviously as a UAE resident I do not pay any tax on capital gains or income⁢ derived from these investments currently. However, in the next 3-4 years , I intend to︀ move back to the UK. I am currently researching what structures I should put in︁ place to protect these investments from capital gains tax, income tax if I draw it,︂ and also inheritance tax etc for future estate planning

I am very interested in any︃ advice that anyone here has - whether it be direct advice or advisors / companies︄ they recommend who might be able to advise me

Thanks all !!
 
Congrats on your earnings!

Well, firstly you can claim the 4-year FIG regime if you‌ are getting back after 10 year non UK resident Your income and capital gains from‍ abroad may not be taxable in the UK.
As for investments, realise gains you’re happy⁠ to bank. +Now the focus is on low-yield, acc share classes.
 
Welcome aboard thu&¤#. I have moved thread to correct section as this is a tax‌ question.

There is literally nothing legal you can do long term once⁣ you move back to UK with your wealth. If your gonna receive income on it⁢ you will need to pay HMRC. UK also has plenty of anti-avoidance legislation especially around︀ trusts etc. Under new UK government and economic situation expect it to be increased. The︁ 4 year scheme is very short and effectively pointless in your situation if the move︂ back is permanent.

Many UK millionaire/billionaire non-doms with the means︅ to hire the best advisors and financial engineers all ended up leaving the UK.

I did however discuss a means of reducing UK tax to zero for a smaller amount︆ of income and investments below but it has high risk.
 
Hi - thanks for reply - and for moving it to the correct section!︋ (sorry newbie here!)

I know many millionaire/billionaires left the UK - but also plenty are︌ not - and I think there surely is a way to make the following work︍

These are just by examples / using round numbers to keep maths simple !

Lets say -
Living costs per year are $300k usd spending (net)
And lets say -︎
Have $20mm usd liquid (after housing etc) for investments. And lets say have a target️ return of 8% on the investments, ie expecting to return $1.6mm usd gross

IF the‌ investment account is in my own name in UK, is that treated as "income" or‍ "capgain" - I'm not sure - but either way im paying circa 30-45% on $1.6mm⁠ gross so actually receiving 880k-1.2mm usd net. After deducting my $300k of spending above, I⁤ am left with 580-900k usd to roll up in investments.

VERSUS - if I setup⁣ an "investment vehicle" / fund - that was based in a 0% tax regime, the⁢ fund makes $1.6mm profit gross and full $1.6mm net. I need $300k - even if︀ I have to pay myself that as UK resident with full income tax at 45%,︁ I need to withdraw $545k (545*0.55=300). The balance of $1,055k (1,600-545) compounds in new investments︂

So whether the investment gains are classified as capital gains or income (and I suspect︃ it would be as income if it was my "employment" managing my investments) - then︄ I am massively better off in terms of compounding my investment gains by setting up︅ a structure than having them in my own name (in the case above - if︆ all gains were taxed as "income" - then I would be almost $500k better off︇ - by compounding 1,055k vs 580k)

Also the fund/trust setup might have (1) some cost︈ deductibility's - e.g. if bought a car or home office equipemnt they could be deductible︉ as business expenses?, (2) could employ my wife for the fund/trust and further reduce income︊ tax burden, (3) some longer term estate planning benefits if we do have kids -︋ eg passing down shares in the fund or trust

I am convinced there would be︌ structures that make sense in the above situation - but I am no tax expert︍ (as I am sure is obvious from the above!) so looking for some advice -︎ for which I am happy to pay for the advice, and implementation

Thanks!
 
apologies for the off topic question, but may I ask why one would be motivated‌ to move from UAE to UK from a lifestyle perspective? The internet would have you‍ believe the UK is worse in every way
 
Don't waste your time. See below what I wrote. But if you think⁣ your smarter than them good luck.
 
Depends on your life goals - are you planning on passing on assets? There is‌ a significant development around IHT and 7-year rule in the UK that you should be‍ aware of. Unless you really want the UK government to claim 40% of your networth.⁠

Generally speaking you have a very good clean capital to live off for another 10-30⁤ years depending on your spending habits. You can offset a lot of CGT (when selling⁣ assets) and/or dividend tax by actively investing in some verticals (EIS/SEIS come to mind). Also⁢ you can just avoid drawing dividends and instead put some funds in low-income assets (bonds)︀ and live off them, while keeping your main networth invested. Some of my acquaintances generally︁ did that aiming to stay invested for the next 4-9 years and hoping that the︂ next government will relax the rules and be more investor-friendly. On the other hand many︃ just bit the bullet, sold and paid CGT before it gets in line with income︄ tax (that is on the table) or just left the country and sold with 0%︅ tax (with the same aim to return after 5+ years).
 
Living in⁠ UAE is not the "panacea" the internet would make you believe! (and by the same⁤ token - UK not nearly as bad as internet makes out)
Whenever I've been here⁣ I have never had my phone stolen, or car broken into - touch wood
And what internet doesn't mention is the amazing weather here (for summer at least!), having "seasons",⁢ amazing restaurants, theatre, concerts, festivals, culture, live sport on every week, top schools......... etc etc︀ etc
I have lived abroad for over 7-8 years now - and while it's been︁ an incredible way to save money and grow personal wealth/investments and set myself up for︂ life -> now I've achieved my financial goals - I am looking for more out︃ of life than living in a pretty boring / miserable country filled with (other) avaricious︄ expats !
 
@Martin Everson thanks for reply‍ - but may I ask a follow up question - and I PROMISE I don't⁠ mean this facetiously (but worried that online it just won't come across properly)

But if⁤ trying to reduce / or circumvent one's personal tax liability in UK is a waste⁣ of time - what is the point of this forum !!
I thought this was⁢ where people were discussing various personal/corporate/tax structures that could shelter assets or reduce tax exposures︀ !!

I promise you that's not a facetious question - what I mean is -︁ surely there are ways to achieve a lower tax burden (even if it is simply︂ setting up a UK company, capitalizing it with a directors loan, and then at least︃ when doing various things in daily life, some may become tax deductible from company "profits"︄ rather than taxed on gross - eg if wife and I both listed as directors︅ than an evening meal could be classified as a director's meeting and legitimate business expense︆ . Also company car purchase etc.
Even if the company does need to actually "do"︇ something - quite easy to buy a very small buy to let for like 100-125k︈ in North of England in the compnay structure and then the company legitimately "manages" that︉ property

And the above is a UK example which I think could be a way︊ of reducing tax burden - there must be other / perhaps more efficient ways using︋ offshore vehicles
 
Have you considered the Isle Of Man? Maximum 20% personal income tax on dividend income‌ and no capital gains. Property quite cheap compared to some areas of the UK, and‍ owning a property gets you automatic tax Isle Of Man tax residency without any qualifying⁠ period. Its also just a one hour flight from London with no border controls.

Nothing to stop you also owning a property in mainland UK.

Jersey and Guernsey are other⁤ possibilities.
 
Not OP, but‌ IoM is also a boring place to live with a worse climate than, say, SE‍ of England. If you want culture, social network, good schools etc - there are not⁠ so many places where you can get it in the UK.
 
I agree about the IOM, but did you not read this⁤ part of my post "Nothing to stop you also owning a property in mainland UK."?⁣
 
What about setting up a trust in Jersey?

Investigate whole life insurance policy, use the‌ investment revenue to pay for it. Take a loan against the policy, it pays back‍ when you die, trust goes to whoever you nominate.

Standard Chartered UAE offer these policies⁠ and you can borrow against them.
 
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