In this year’s UK Budget, the Labour government is looking to raise between £15 billion ($19.6 billion) and £20 billion.
The new governing party has a huge majority and plenty of MPs to push through its policy agenda, and a five-year term, enough time for voters to forget any early changes as ministers look to solve the country’s fiscal challenges.
Prime Minister Keir Starmer has openly said this Budget will be “painful”, but promised not to increase the taxes of working people, ruling out increases to income tax and national insurance.
In the same breath, however, he made it clear that: “Those with the broadest shoulders will bear the heaviest burden.”
A series of policy changes affecting non-dom tax status and inheritance tax (IHT) are expected to be announced by the government on October 30.
Should that happen, such changes are likely to prompt internationally mobile individuals to review their futures in the UK and explore more favourable tax jurisdictions in the Middle East.
What do we know so far?
We know that value-added tax will be payable on private school fees from January 1 next year and added to fees paid after July 29 that relate to next year’s school terms.
We also know that non-domiciles, once they have been resident in the UK for four tax years, will be liable to pay tax on worldwide income and gains, removing the concept of the remittance basis of taxation.
Although as a corollary to this, non-domiciles will be allowed to bring foreign income and gains into the UK free of tax for the first four years of their residency.
We know that the IHT protection available to trusts, providing immediate tax exemption, established by non-UK domiciles will be removed and while the government has yet to confirm the timeline for these changes, they are most likely to be effective from October 30.
IHT will move away from being based on an individual’s domicile status to a residency basis. The previous government suggested this would be based upon a residency of 10 years. However, there is no certainty that the current government will follow such advice.
A key concern for many is whether existing offshore trusts set up by non-domiciles before the Budget will continue to be exempt from IHT.
Retrospective changes would render existing structures almost worthless and have huge implications.
Other potential changes could include hikes to capital gains tax to align it with income tax, removing rebasing on death as well as increases to IHT generally.
All of which represent the epitome of “those with the broadest shoulders”.
What it means for the Middle East
These tax implications could lead internationally mobile individuals to reconsider their UK domicile and residence, and whether to sell businesses before the proposed changes come into effect.
Individuals able to move to another market should examine their long-term plans and consider the potential impact of the changes.
It is likely that individuals most affected and free to move will consider alternative jurisdictions offering a more favourable tax outcome that also meets their business and lifestyle requirements.
The UAE is expected to be an attractive destination for individuals leaving the UK due to its political stability, international connectivity, favourable visa policies, and high quality of life
Tony Müdd
Economies across the Middle East are expected to benefit from the UK tax changes, further fuelling the region’s growth and emergence as a major economic centre.
The UAE is expected to be an attractive destination for individuals leaving the UK due to its political stability, international connectivity, favourable visa policies, and high quality of life, as an increasing volume of overseas professionals move to Dubai and Abu Dhabi.
Enquiries from clients looking to leave the UK for the Middle East are on the increase, with people exploring countries including the UAE and Saudi Arabia as they reassess their potential tax obligations.
Meanwhile, a number of clients are moving to the Middle East this year to take advantage of their current tax status to dispose of their businesses tax efficiently.
As ever, individuals considering major financial decisions will need to conduct a thorough assessment of their tax and asset structures with their advisers as they review alternative jurisdictions.
For some, it may be worth considering whether existing plans should be accelerated in anticipation of the expected changes.
The upcoming Budget is set to bring some of the most significant changes to UK tax in recent times.
As we wait on the Chancellor’s final decisions, the one thing I can guarantee ahead of October 30 is that this year’s Budget will be anything but boring.
Tony Müdd is divisional director – development and technical consultancy at St James’s Place
Recycle Reuse Repurpose
New central waste facility on site at expo Dubai South area to handle estimated 173 tonne of waste generated daily by millions of visitors
Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site
Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area
Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent organic waste and 13 per cent general waste.
About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor
Recycling at Ras Al Khor unit:
Plastic items to be converted to plastic bags and recycled
Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays
Glass waste into bowls, lights, candle holders, serving trays and coasters
Aim is for 85 per cent of waste from the site to be diverted from landfill
What it means to be a conservationist
Who is Enric Sala?
Enric Sala is an expert on marine conservation and is currently the National Geographic Society's Explorer-in-Residence. His love of the sea started with his childhood in Spain, inspired by the example of the legendary diver Jacques Cousteau. He has been a university professor of Oceanography in the US, as well as working at the Spanish National Council for Scientific Research and is a member of the World Economic Forum’s Global Future Council on Biodiversity and the Bio-Economy. He has dedicated his life to protecting life in the oceans. Enric describes himself as a flexitarian who only eats meat occasionally.
What is biodiversity?
According to the United Nations Environment Programme, all life on earth – including in its forests and oceans – forms a “rich tapestry of interconnecting and interdependent forces”. Biodiversity on earth today is the product of four billion years of evolution and consists of many millions of distinct biological species. The term ‘biodiversity’ is relatively new, popularised since the 1980s and coinciding with an understanding of the growing threats to the natural world including habitat loss, pollution and climate change. The loss of biodiversity itself is dangerous because it contributes to clean, consistent water flows, food security, protection from floods and storms and a stable climate. The natural world can be an ally in combating global climate change but to do so it must be protected. Nations are working to achieve this, including setting targets to be reached by 2020 for the protection of the natural state of 17 per cent of the land and 10 per cent of the oceans. However, these are well short of what is needed, according to experts, with half the land needed to be in a natural state to help avert disaster.
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The biog
Family: Parents and four sisters
Education: Bachelor’s degree in business management and marketing at American University of Sharjah
A self-confessed foodie, she enjoys trying out new cuisines, her current favourite is the poke superfood bowls
Likes reading: autobiographies and fiction
Favourite holiday destination: Italy
Posts information about challenges, events, runs in other emirates on the group's Instagram account @Anagowrunning
Has created a database of Emirati and GCC sportspeople on Instagram @abeermk, highlight: Athletes
Apart from training, also talks to women about nutrition, healthy lifestyle, diabetes, cholesterol, blood pressure
India Test squad
Virat Kohli (c), Mayank Agarwal, Rohit Sharma, Cheteshwar Pujara, Ajinkya Rahane, Hanuma Vihari, Rishabh Pant (wk), Wriddhiman Saha (wk), Ravichandran Ashwin, Ravindra Jadeja, Kuldeep Yadav, Mohammed Shami, Umesh Yadav, Ishant Sharma, Shubman Gill
More on Quran memorisation:
UAE currency: the story behind the money in your pockets
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Killing of Qassem Suleimani
