Europe
United Kingdom: tax at a glance
A high-tax residence system that abolished the non-dom regime in 2025. In its place is a 4-year foreign income and gains (FIG) exemption for new arrivals.
Ways to relocate to United Kingdom
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 45%
- Corporate income
- 25%
- Capital gains
- A higher rate of 24% applies to residential property and other assets, with an 18% basic rate. The annual exempt amount is GBP 3,000.
- VAT
- 20%
- Dividends (WHT)
- 0%
- Interest (WHT)
- 20%
- Royalties (WHT)
- 20%
- Social security (employee)
- 8%
- Social security (employer)
- 15%
- Wealth tax
- None
- Inheritance / estate
- 40% on estates above the GBP 325,000 nil-rate band.
- Property tax
- Council tax, a local band-based charge, applies alongside business rates. SDLT is due on purchase.
- Other
- Large employers pay an apprenticeship levy of 0.5%. Employees pay National Insurance contributions (NIC) of 2% above the upper earnings limit.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
- Special regime
- The FIG regime, a 4-year exemption on foreign income and gains for new residents.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Frequently asked
What is the income tax rate in United Kingdom?
The top marginal personal income tax rate in United Kingdom is 45%. The system is progressive, with an additional rate of 45% above GBP 125,140. Dividend rates rose 2 percentage points from April 2026, taking the top dividend rate to 39.35%. Savings and property income rates rise from April 2027. Scotland sets its own bands, topping out at 48%.
What is the corporate tax rate in United Kingdom?
The headline corporate income tax rate is 25%.
Does United Kingdom tax capital gains?
Capital gains for individuals: A higher rate of 24% applies to residential property and other assets, with an 18% basic rate. The annual exempt amount is GBP 3,000..