Under UK rules for 2026/27, a UAE resident may still get UK basic rate relief on pension contributions of up to GBP 3,600 gross a year for a limited period, depending on when they left the UK and when they joined the scheme. Higher relief is generally only available if you still have earnings taxed in the UK. The UAE government states that it does not levy income tax on individuals, so there is no UAE relief to claim.

Why UAE residents are a special case

UK pension tax relief broadly gives back the income tax you would have paid on the money you contribute. As the UAE does not levy income tax on individuals, there is no local relief, and a UAE salary does not create any UK relief either.

That leaves the UK rules for people who have left. These turn on whether you are a "relevant UK individual" for the tax year in question.

Who may still qualify for UK relief

Under section 189 of the Finance Act 2004, as explained in HMRC's Pensions Tax Manual, a non-resident is a relevant UK individual for a tax year if any of these apply:

  • you have relevant UK earnings chargeable to UK income tax that year
  • you were UK resident at some time in the five tax years immediately before that year, and you were UK resident when you joined the pension scheme
  • you have overseas Crown employment earnings taxed in the UK, or are the spouse or civil partner of someone who does

Many British expats working for a private employer in Dubai or Abu Dhabi will look to the second test. A non-resident may qualify for relief under the relevant UK individual rules, including the five-tax-year condition, but the precise result depends on when the pension was joined, the tax year of contribution and whether the contribution is made through relief at source. Joining a new UK pension after becoming UAE resident does not meet that test.

How much relief you may get

With no relevant UK earnings, the most you can get relief on is GBP 3,600 gross a year, which HMRC calls the basic amount. This is a gross limit for tax relief, not a general contribution limit. You can pay in more, but without relief, and it counts towards the GBP 60,000 annual allowance.

The relief is given through "relief at source". You pay GBP 2,880 and the provider claims GBP 720 from HMRC, at the 20% basic rate. Relief at source is mainly used by personal pensions, including many SIPPs. Workplace schemes using the "net pay" method take contributions from UK payroll before tax, which does not work once you are off UK payroll.

If you still have UK earnings, for example for days worked in the UK, you may be able to get relief on contributions up to 100% of those earnings instead.

A provider's decision on accepting contributions may also reflect the regulatory requirements of the country where you live. A UK provider may be unable to provide ongoing investment services, advice or new contributions even though the pension remains legally valid.

When relief stops

Relief under the five tax year condition generally ends after the fifth tax year following the year you left. After that, unless you have UK earnings, contributions can still be made without UK relief.

Review your approach before that point. Without relief, the case for adding to a UK pension depends on where you plan to retire, the currency you will spend in, and inheritance tax. For deaths on or after 6 April 2027, legislation is intended to bring most unused pension funds and certain pension death benefits into the inheritance tax calculation, subject to exclusions (such as certain death in service benefits and dependants' scheme pensions) and detailed rules still being finalised. The treatment depends on the type of arrangement, the member's long-term UK residence status and the nature of the benefit.

Read more in our guide to UK pension options for British expats in the UAE, or see becoming tax resident in the UAE.

Worked example

Illustrative example only, not a real client.

James left London for Dubai in August 2023, in the 2023/24 tax year. He has had a UK personal pension using relief at source since 2015. Assuming he stays non-UK resident with no UK earnings:

  • From 2024/25 to 2028/29 he pays GBP 2,880 a year and the provider claims GBP 720, giving GBP 3,600 gross each year.
  • Over those five years: GBP 14,400 paid, GBP 3,600 relief, GBP 18,000 gross.
  • From 2029/30, further contributions would go in without UK relief.

Common mistakes

  • Opening a new UK pension after arriving in the UAE and expecting relief on it.
  • Assuming a large UAE salary allows bigger relieved contributions.
  • Not tracking when the five tax year window closes.

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 (UK). 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.