Spotlight on: The Great UK-to-Dubai Exodus — Real Company Moves, Why They Did It & What It Means for Tax Advisers

Several high-profile UK individuals and firms have recently formalised a presence in the UAE — ranging from founders changing tax residency to wealth managers opening permanent Dubai offices and boutique advisory firms moving headquarters.

These are not isolated PR stunts: they reflect strategic responses to tax, regulatory and market incentives — and they create urgent questions for tax advisers on both sides of the Gulf. Today's blog delves into those questions and hopefully provides some answers.

Who's Making the Move?

Nik Storonsky, co-founder and CEO of Revolut, has formally changed his residency from the UK to the UAE — a move widely reported and documented in Companies House filings. For entrepreneurs owning large equity stakes, a change of personal tax residency can dramatically reduce exposure to UK capital gains and income tax on future disposals or remuneration, and it sends a strong signal to other founders weighing the UK’s rising tax burden.

Why it matters: founder residency changes can have knock-on effects for corporate governance, investor perception and, in some cases, where strategic decisions are considered to be made — which in turn affects corporate tax residence and reporting obligations.

Case study 1 — Nik Storonsky / Revolut: founder residency change (fintech signal)

Canaccord Wealth announced and opened a permanent Dubai office (DIFC) as part of a deliberate expansion into the Middle East to serve existing relocated clients and to access new capital and HNW markets. This isn’t just an overseas sales office — it’s a regulated hub designed to capture wealth flows and client relationships.

Why it matters: wealth managers opening in Dubai are following client migration patterns; that in turn creates demand for local tax and trust structuring, cross-border advice and compliance frameworks that bridge UK legacy arrangements and UAE law.

Case study 2 — Canaccord Wealth: established UK wealth manager opens in DIFC

Boutique firms and specialist advisers (for example, Argella) have publicly relocated headquarter functions to Dubai to be closer to clients, to tap a regional talent pool, and to benefit from a more favourable regulatory and cost environment for international expansion. These moves are often tactical: maintain a UK entity for local business while using Dubai as a strategic, growth-facing base.

Why it matters: moving the HQ or principal place of business is operationally doable — but puts the onus on firms to demonstrate real economic substance (office, staff, genuine management activity) if they wish to rely on the UAE’s fiscal benefits.

Case study 3 — Argella & other boutiques: full HQ relocations or regional HQ moves

The concrete consequences — what actually changes (and what doesn’t)

1) Personal tax exposure vs corporate tax exposure

Moving personal residency may remove an individual’s UK income/capital gains exposure in many cases — but if control, decision-making, or central management remains in the UK, the company can still be UK tax resident. Advisers must separate personal and corporate facts.

2) Economic Substance & UAE corporate tax rules

Free zones and onshore jurisdictions offer advantages — but substance rules, licensing constraints and the UAE corporate tax regime (with thresholds and conditions) mean clients must show real activity, not just paper filings.

3) Cross-border reporting & double-tax risks

Relocations trigger reporting to HMRC, potential exit charges, and interactions with double tax treaties. Poorly structured moves can cause overlap (or unexpected exposure) rather than the intended savings.

4) Operational & client-facing consequences

Time zones, contracts governed by UK law, investor expectations, and banking relationships all change. Some clients prefer UK-domiciled entities — others welcome a Dubai presence. You can expect nuanced commercial trade-offs.

5) Reputational and investor optics

A public move for “tax reasons” can be misinterpreted. Founders and firms must manage stakeholder communications and be prepared to explain legitimate commercial reasons (market access, client presence, regulatory environment) alongside tax planning.

Practical checklist for Dubai tax experts advising UK movers

Use this as an immediate checklist when a UK individual or business asks about moving to Dubai:

• Residency fact-find — map days, ties, family location, and where boards meet. (Personal residency tests & statutory residency)

• Corporate central management review — where are board decisions taken? Who runs the company day-to-day? Document everything.

• Substance plan — office lease, employees, local executive hires, local bank accounts, audited accounts — not just nominee directors.

• Exit/timing analysis — consider UK exit tax, potential clawbacks, and timing of disposals or remuneration events.

• Treaty & withholding review — check relevant UK-UAE treaty positions, withholding tax issues, and dividend flows.

• Regulatory alignment — if the client is in FS, fintech or wealth management, verify the correct DIFC/DIRA/ADGM licences, passporting rights, and local compliance regimes.

• Communications & governance — prepare shareholder/investor communications that explain the move’s commercial rationale to soften reputational risk.

• Ongoing compliance calendar — dual filings, international disclosures (FCA, HMRC forms), and UAE filings — create a joint UK-UAE compliance roadmap.

To Summarise

The recent, real moves we’ve seen — from founders changing residency to established wealth managers opening Dubai hubs and boutiques relocating — show a clear pattern: the UAE is a strategic destination for those seeking tax efficiency, client access and an attractive operating base. But the gains do come with some serious obligations that need consideration and often professional guidance.

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📞 Thinking about relocating? Contact The Tax Faculty today to explore how we can help with your tax planning and transition.