Spotlight On…The Truth About Selling UK Shares & Crypto as an Expat (HMRC Could Still Be Watching!)

If you’ve relocated to Dubai, enjoying the sunshine and the tax-free lifestyle, it’s easy to assume your UK tax obligations are behind you. But if you sell UK assets like shares, crypto, or property while living abroad, HMRC may still expect a Capital Gains Tax (CGT) report — and you could face penalties if you don’t file.

Let’s break it down clearly 👇

Think You're Tax Free in Dubai?

Not automatically.

To be considered non-UK resident for tax purposes, you must pass the Statutory Residence Test (SRT). If you don’t meet the required criteria (e.g. spending too many days in the UK or keeping strong ties), HMRC can still treat you as UK tax resident — and tax you accordingly.

✅ If you are UK non-resident: You may still need to pay tax on UK assets.

🚨 If you are UK resident (even unintentionally): You pay UK tax on worldwide income and gains — including crypto and shares held abroad.

Does Living in Dubai Make You Tax Non-Resident in the UK?

If the shares are in UK companies – HMRC may still apply Capital Gains Tax.

If the shares are non-UK but you hold an ISA, SIPP or UK brokerage – the UK tax rules may still apply.

You may need to file a UK self-assessment tax return to declare gains if you exceed the annual CGT allowance.

💡 Important: Even if no tax is due, you may still be required to report the disposal.

Selling Shares from Dubai – Do You Still Owe UK CGT?

Cryptocurrency is treated as a taxable capital asset by HMRC. That means:

Selling, swapping, or converting crypto creates a taxable disposal.

HMRC now has data-sharing agreements with major crypto platforms, including offshore ones.

If you have a UK address linked to your account or previously paid tax in the UK — HMRC can trigger a compliance check or “nudge letter”.

👉 Being in Dubai does not hide you from HMRC’s digital tracking systems.

What About Crypto? HMRC Now Has Eyes on Offshore Exchanges

If you're a non-resident expat selling UK residential property, you must:

✔️ Report the sale to HMRC within 60 days

✔️ Pay any Capital Gains Tax due within the same 60-day window

Miss it? HMRC will issue late filing penalties even if no tax was due. Many expats get caught out by this.

Property Rule: The 60-Day Reporting Deadline Still Applies

Final Word

HMRC are targeting ex-pats, of this there is no doubt.

HMRC’s Worldwide Disclosure Facility and new "Offshore Assets Compliance Team" are actively reviewing expat financial data. If your name is flagged, you could receive a nudge letter or investigation notice.

The smart move? Get ahead of HMRC — declare correctly and use every available tax relief and exemption.

As ex-HMRC tax specialists, The Tax Faculty helps Dubai-based expats stay compliant while minimising UK tax liabilities. We offer expert CGT filing, crypto gain reviews, and HMRC enquiry protection.

👉 Book a confidential expat tax review today.

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