UK

The United Kingdom (UK) is an island in the northwest of Europe. Its official language is English, and London is the capital city. Although it left the European Union (EU) in 2020, the UK had always retained the pound sterling (GBP) as its official currency, even when it was an EU member.

A leading financial sector and trading power, the UK is a trillion-dollar economy with business services, insurance, and banking accounting for lion’s share of its gross domestic product (GDP). While manufacturing in the UK is an industry in decline, the leading sectors are in IT, specialist engineering, aerospace, pharmaceuticals, and biotechnology. 

AI, fintech, and digital media are also robust industries in the UK, and intensive, highly mechanised agriculture provides around 60% of the country’s food requirements. A net importer of energy for over a decade, the UK’s natural gas and oil reserves are on the decline. 

It’s a permanent member of the United Nations (UN) Security Council, a member of the Commonwealth, and a founding member of the North Atlantic Treaty Organisation (NATO). Since the UK left the EU, there have been a series of changes as some EU tax measures no longer apply.

Our local Tax Natives in the UK can tell you everything you need to know about the ins and outs of your tax obligations there. Whether you’re buying a single property, or doing complex business deals, we’ll get you the advice you need. Just say the word and we’ll link you with a local expert who can answer all your questions. 

THE HEADLINES

• The UK has a headline corporate income tax rate of 19%, which is set to increase to 25% from 1 April 2023
• The basic rate of personal income tax is 0% for earnings up to GBP 12,570. On earnings between GBP 12,571 and GBP 50,270 the rate is 20%. A higher rate of 40% applies on earnings between GBP 50,271 and GBP 150,000, with an additional rate of 45% on earnings over GBP 150,000
• The standard VAT rate is 20%