International and the Gulf

The statutory residence test is the set of rules that decides whether you are UK resident for a tax year. It looks at the days you spend in the UK and your ties to the UK, such as a home, work, family and time spent here in earlier years. Your residence status decides whether the UK can tax your gains, so it matters greatly around a sale.

Buying the shares does not itself create a UK tax charge for the buyer, although stamp duty is usually payable on the share transfer. After the purchase, the UK company continues to pay UK corporation tax on its profits. The overseas buyer needs to think about how profits will be paid out, how any acquisition debt is structured, and how a future sale will be taxed.

Yes. Many Gulf investors hold UK businesses directly through a company in their home country, or through a UK holding company. The choice affects how dividends, interest and a later sale are taxed, as well as the investor's reporting and substance requirements. We advise on the UK tax side only, so the structure should be agreed with advisers on the Gulf side too.

The UAE has no personal income tax or capital gains tax for individuals. That is why many business owners consider moving there before a sale. However, the UK side decides whether you are still taxed on the gain. If you remain UK resident, or return within five years or less under the temporary non-residence rules, you can still face UK capital gains tax.

Often yes. Becoming non-UK resident changes how you are taxed, but some UK income, such as rent from UK property, can remain taxable in the UK. Non-residents can also be taxed on gains from UK property and UK property-rich companies. The rules depend on the type of income or gain and any relevant tax treaty, so each source needs checking.

If you were away for five years or less, the temporary non-residence rules can tax gains on assets you owned before leaving as if they arose when you return. Certain income received while abroad can also be caught. This means a short move abroad to sell a company may not save UK tax. The length and pattern of your time away need careful planning.

Before the sale is agreed. Your residence is tested for each tax year, and the timing of the contract, completion and any deferred payments can decide which year a gain falls in. Moving after the deal is effectively done is usually too late. You also need to consider how long you plan to stay away and the effect on inheritance tax.

Not immediately. Since April 2025, UK inheritance tax on worldwide assets depends on long-term residence rather than domicile. If you have been UK resident for a long period, you can stay within the scope of UK inheritance tax for some years after leaving. Business Relief is usually lost once your shares become cash, so a sale can increase your exposure.

Profits are usually paid as dividends, interest on shareholder loans or management charges. Each is taxed differently in the UK, and the UK company must be able to justify payments such as interest and fees on commercial terms. The right mix depends on the investor's structure and plans. The Gulf tax position should be checked with local advisers.

Transaction Tax Partners advises on the UK tax side of deals with UAE and Saudi parties, including sellers moving to the Gulf and Gulf investors buying UK businesses. Advice on UAE or Saudi tax and law should come from local advisers, and we work alongside them. You can book a call or email taxadvisory@aswatax.co.uk, and we reply within one working day.