You may be able to. Many British expats in the UAE keep their UK home and let it out. For 2026/27 the rent generally remains taxable in the UK even though you live in Dubai, and tax is often collected through the Non-Resident Landlord Scheme unless HMRC approves you to receive rent in full. You will usually need to file a UK tax return, and there are mortgage, insurance and residence points to resolve first.

How UK tax applies to the rent

The UAE does not currently charge personal income tax on rental income, but the UK generally taxes rent from UK property wherever you live. GOV.UK says that if you live abroad for 6 months or more a year, HMRC treats you as a non-resident landlord for this scheme, even if you are UK resident for tax purposes.

The scheme is a collection mechanism, not your final tax bill:

  • Withholding. Your letting agent, or your tenant if you have no agent and the rent is more than £100 a week, deducts basic rate tax from the rent after deductible expenses and pays it to HMRC.
  • Approval to receive rent in full. You can apply on form NRL1. HMRC may refuse if your UK tax affairs are not up to date.
  • Final liability. Either way, you generally report the income through Self Assessment. Your actual liability is worked out on the return, and tax deducted under the scheme counts towards it, so you may get a refund or owe more.

Expenses, finance costs and the personal allowance

You are taxed on profit, not gross rent. Typical allowable expenses include letting agent fees, repairs, insurance, ground rent and service charges.

Finance costs are treated separately. Mortgage interest is not deducted from rental profit; instead you get a tax reduction at 20% of the lowest of your finance costs, your property profit and your income above the personal allowance. Whether an agent can reflect finance costs when calculating scheme deductions should be checked with HMRC's guidance.

British citizens can generally claim the UK personal allowance as non-residents, which is £12,570 for 2026/27. For England, Wales and Northern Ireland bands, income above that is taxed at 20% up to £50,270 of total UK taxable income, and 40% above.

Illustrative example only, not a real client.

Emma moves to Dubai and lets her Bristol flat for £1,500 a month, £18,000 a year. Agent fees, insurance and repairs come to £3,000, leaving £15,000 profit. She pays £5,000 of mortgage interest. Assuming she has no other UK income and claims the personal allowance, £2,430 is taxable at 20%, which is £486. Her finance cost reduction is 20% of the lowest of £5,000, £15,000 and £2,430, which is also £486. No UK tax would generally arise under these assumptions. If her agent deducted 20% of the £15,000 under the scheme, about £3,000, she may be able to reclaim it once her return is filed.

Practical points before you let

  • Mortgage. Many residential mortgages do not allow letting without the lender's consent, and some lenders will not lend to non-residents.
  • Insurance. Standard home insurance may not cover a let property.
  • Landlord rules. Safety, deposit and other legal duties depend on where in the UK the property is.
  • Making Tax Digital. Digital record keeping and quarterly updates are being introduced in stages by reference to qualifying income from UK self-employment and property: over £50,000 (from April 2026), over £30,000 (from April 2027) and over £20,000 (from April 2028), each based on an earlier tax year. Whether it applies to you depends on the legislation and qualifying-income rules, not just on being a landlord.

Does keeping the home affect your UK residence?

Possibly. Under the Statutory Residence Test, a UK place to live that is available for a continuous 91 days in the tax year, where you spend at least one night, can give you an accommodation tie. HMRC guidance indicates that a home let on a commercial basis to a third party is not your home while it is let. Gaps between tenancies and staying there on visits need care. See our guide to moving from the UK and the Statutory Residence Test.

Selling later

If you sell in future, UK capital gains tax may apply even though you are non-resident, and the sale generally needs reporting within 60 days of completion.

Common mistakes

  • Letting without telling the mortgage lender or insurer.
  • Assuming no return is needed because tax was deducted under the scheme.
  • Using the property between tenancies without considering the residence tests.
  • Forgetting that a later sale may trigger UK capital gains tax.

A regulated financial adviser can help. Get in touch for a free introduction.

Sources and further reading

Last reviewed: October 2026. Tax year: 2026/27. Jurisdictions covered: UK, UAE. Rates, legislation and guidance change, so recheck before relying on this. Rules can differ between England and Wales, Scotland and Northern Ireland; tax residence is fact-specific; treaty outcomes depend on residence, domicile or nationality provisions; examples are simplified and omit reliefs, costs, exchange rates and anti-avoidance rules. This is general information, not financial, tax or legal advice. Take advice in the relevant country before acting.