Global Tax Coordination - Latest Insights

The outbreak of conflict involving the US, Israel and Iran on 28 February 2026, and the wider instability that has followed across the region, has prompted many individuals and families living in the UAE to reassess their position. The conflict began with coordinated US-Israeli strikes on Iran on 28 February, and that it has since widened, affecting the Gulf more broadly and disrupting normal assumptions around regional stability. For many internationally mobile families, the question is no longer simply whether the UAE has been an effective base. It is whether, in light of recent events, they should remain where they are, relocate elsewhere, or return to the UK — and what UK tax consequences may follow from that next step, even if the relocation is only temporary. That is not a question to answer casually.

The inheritance tax treatment of pension wealth has undergone a fundamental and far-reaching change. Following the latest Budget, there has been a collective sense of relief that some of the more extreme measures trailed in advance — wealth taxes, exit charges and similar proposals — did not ultimately make their way into legislation. However, that relief should not be mistaken for a return to the status quo. While confidence was undoubtedly damaged by the pre-Budget whispering campaign and selective leaks, the reality is that one of the most significant changes to long-established estate planning assumptions has already been set in motion: pensions are no longer sacrosanct from inheritance tax.

Today’s Budget confirmed what many suspected after the OBR’s unprecedented early leak: a statement built around higher taxation of income from assets, tighter anti-avoidance measures and welfare reforms, with comparatively modest measures aimed at stimulating long-term growth.