If residents plan to move back to Scotland next year, keep their Dubai apartment and rent it out. If rental income is earned from it, will you have to pay tax in the UK? Do you need to report it?

As a UK tax resident, you’re subject to UK income tax on your worldwide income meaning any rental income from your Dubai property is taxable in the UK even if the money stays in a UAE bank account. You must disclose this income to HMRC through a self-assessment tax return. Failing to report income is considered tax evasion and can lead to severe penalties.

You can reduce your taxable rental profit by deducting certain expenses such as agency fees and maintenance costs but you’ll need to keep proper records. Additionally, if you sell the property while living in the UK, any profit may be subject to capital gains tax with allowances for some expenses and a small annual exemption (£3,000). Capital gains tax rates are 18% for basic rate taxpayers and 24% for higher rate taxpayers.

It's advisable to seek expert tax advice when moving to the UK as there are many complex considerations, especially regarding property ownership and income from abroad.