The global tax game: How UAE is winning while London forgets its own playbook

Expert View

- Sheetal Soni

In any game, it’s not just how you play — but how others play — that can work to your advantage. This perfectly captures the ongoing shift in global tax dynamics, particularly in the United Kingdom.

According to the 2024 Global Migration Report, over 9,500 high-net-worth individuals (HNWIs) have exited the UK — a number that is only expected to grow. One of the most significant catalysts for this exodus is the upcoming overhaul of the UK’s non-domiciled (non-dom) tax regime, effective 6 April 2025.

Let’s break down what’s changing—and why the UAE stands to gain the most:

What was the non-dom regime?

Until 5 April 2025, UK residents who were classified as non-domiciled could benefit from the remittance basis of taxation. This meant:

• They were only taxed on foreign income and gains (FIG) if these were brought into (remitted to) the UK.

• This allowed wealthy individuals to accumulate global income offshore without facing UK tax obligations — so long as they kept the money abroad. This system made the UK attractive to wealthy foreigners. But the landscape is about to shift.

What's changing from 6 April 2025?