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.
Worldwide (residence-based)
Last verified
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%The system is progressive, with an additional rate of 45% above GBP 125,140. From April 2026 the ordinary and upper dividend rates rose 2 percentage points, to 10.75% and 35.75%; the additional rate stays at 39.35%. Savings and property income rates rise from April 2027. Scotland sets its own bands, topping out at 48%.
- 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
A special regime for new arrivals
Under the 4-year FIG regime, foreign income and gains are 100% relieved for the first 4 years of UK residence. It is available only after at least 10 consecutive tax years of non-residence.
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.