The UAE government states that it does not levy income tax on individuals, so a UK pension would not generally be taxed in the UAE under current UAE law. The question that matters is whether the UK taxes it. Under the UK/UAE double tax treaty, most UK private and workplace pensions paid to someone who is UAE resident for treaty purposes, and not UK resident, in 2026/27 are generally taxable only in the UAE, which in practice means no UK tax once HMRC accepts your claim. UK government service pensions are the main exception.

What the UK/UAE treaty says

The UK and UAE signed a double taxation convention in 2016. For pensions:

  • Article 17 (Pensions): pensions paid to a resident of one country "shall be taxable only in that State", subject to Article 18(2).
  • Article 18(2) (Government service): pensions paid by the UK government, or from funds it created, for services to the UK state are taxable only in the UK, unless you are both resident in and a national of the UAE.

So a British national in Dubai with a UK civil service, NHS, teachers' or armed forces pension will generally still pay UK income tax on it.

Being a UAE resident for the treaty

To use Article 17, you need to be resident in the UAE for treaty purposes. Article 4 of the treaty treats an individual as a UAE resident if, under UAE law, they are domiciled in the UAE or have their habitual abode or centre of vital interest there.

Under Cabinet Resolution No. 85 of 2022, a person is generally UAE tax resident if any of these apply:

  • their usual or main place of residence and the centre of their financial and personal interests are in the UAE
  • they are in the UAE for 183 days or more in the relevant 12 month period
  • they are in the UAE for 90 days or more in the relevant 12 month period, hold UAE or GCC nationality or a valid UAE residence permit, and have a permanent place of residence or carry on employment or business in the UAE

The Federal Tax Authority issues Tax Residency Certificates, and HMRC will often want to see one.

You also need to be non-UK resident under the Statutory Residence Test. Tax residence is fact-specific, and if both countries treat you as resident, the treaty tie-breaker decides.

Getting the pension paid without UK tax

Your UK provider will deduct tax under PAYE until HMRC instructs it otherwise. To stop that, you apply to HMRC for treaty relief using form DT-Individual. The form notes say it should be certified by the tax authority where you live, or supported by a certificate of residence. Once accepted, HMRC issues an NT (no tax) code to your provider and may refund tax already deducted.

You need a separate claim for each new pension, and HMRC may ask for an updated certificate in later years.

Other points to watch

  • Lump sums. Whether a lump sum counts as a "pension" for Article 17 depends on its nature. Take advice before taking a large lump sum in reliance on the treaty.
  • Temporary non-residence. If you were UK resident in at least 4 of the 7 tax years before leaving and return within 5 years, some pension withdrawals taken while abroad can be taxed in the UK when you return.
  • 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. For many individuals, the domestic inheritance tax test now focuses on long-term UK residence rather than domicile. Domicile remains relevant in some treaty, transitional and anti-avoidance contexts.

Read more in our guide to drawing a UK pension abroad, or becoming tax resident in the UAE.

Worked example

Illustrative example only, not a real client.

Richard, 62, lives in Dubai, holds a UAE residence visa and has a Tax Residency Certificate. Assume he is UAE resident and non-UK resident for treaty purposes, does not hold UAE nationality and takes no lump sum. He has a private pension paying GBP 24,000 a year and an armed forces pension paying GBP 10,000 a year.

After HMRC accepts his DT-Individual claim, no UK or UAE income tax would generally arise on the private pension under these assumptions. The armed forces pension remains taxable in the UK under Article 18.

Common mistakes

  • Assuming "no UAE tax" means no UK tax, without making a treaty claim.
  • Expecting the treaty to remove UK tax on a government service pension.
  • Returning to the UK within five years without checking the temporary non-residence rules.
  • Letting your Tax Residency Certificate lapse when HMRC asks for fresh evidence.

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.