Tax experts suggest Dubai move could save millions for UK pensioners
UK pension holders might dodge new inheritance tax rules by relocating to Dubai where zero-percent income tax applies Financial experts show how this move could save families millions in death duties
The UKʼs tax landscape faces big changes after Rachel Reeves announced new rules about pension inheritance Starting from 04/2027‚ pensions will count as part of someones estate for tax purposes
Around 28k estates currently pay death-tax yearly but experts predict this number might jump to 391k by decades end (a huge rise that worries many tax-planning specialists). The warm weather and tax-free environment of Dubai presents an interesting work-around for UK pensioners
Financial consultancy firm Forbes Dawson showed how moving to Dubai could save millions: a person with £2m in assets and £4m in pension savings would leave their child significantly more money. The math is simple; if they stay in Britain their child gets £2.7m but if they move to Dubai they could pass on £5.6m – thats a whopping £2.9m difference
Most people do not know when they will die and so may not be able to empty their pension scheme perfectly
The UAE already hosts 250k British ex-pats and tax expert Nishi Patel points out some key-points to consider:
- Medical insurance costs
- Visa requirements
- Minimum stay of 90-183 days yearly
- Impact on family relationships
Other tax-friendly destinations include Bahrain Cayman Islands and Hong Kong but Peter Ferrignoo suggests Dubai remains the top pick. However Rob Morgan from Charles Stanley warns that the government might close this loop-hole before the new rules kick in
