The United Kingdom applies a main corporation tax rate of 25% for companies with profits above GBP 250,000 and a small profits rate of 19% for companies with profits up to GBP 50,000, with marginal relief between those thresholds. Capital gains are generally taxed under the corporation tax regime. The standard VAT rate is 20%. Withholding tax is generally 0% on dividends and 20% on interest and royalties. OECD 2023 composite effective tax rates are 22.55% (EATR) and 11.51% (EMTR).
United Kingdom Tax Brief
Time of Update 4/02/2026
United Kingdom Corporate Income Tax (CIT)
General CIT Rate:
1. Companies with profits exceeding £250,000 are subject to a main rate of 25% (effective from 1 April 2023).
2. Companies with profits not exceeding £50,000 are subject to a small profits rate of 19% (effective from 1 April 2023).
3. A tapered tax rate applies to profits falling between £50,000 and £250,000.
3. A tapered tax rate applies to profits falling between £50,000 and £250,000.
CIT Return Due Date:
Tax returns need to be submitted within one year after the end of the accounting period.
CIT Payment Due Date:
According to the scale of the payment company, there may be differences. For more information, please refer to the UK company summary.
CIT Estimated Payment Due Date:
According to the scale of the payment company, there may be differences. For more information, please refer to the UK company summary.
United Kingdom Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
0/20/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/20/20
United Kingdom Value-Added Tax (VAT)
General VAT Rate:
20
Learn More
United Kingdom Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
Capital gains are subject to the regular corporate tax rate.
United Kingdom Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
22.55
Composite Effective Marginal Tax Rate:
11.51
Additional info
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TKEG Expat United Kingdom Corporate Tax Guide
United Kingdom Corporate Income Tax
United Kingdom VAT
United Kingdom labour tax
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Stamp taxes
1.
United Kingdom Corporate Income Tax
The United Kingdom’s main corporation tax rate is 25% for companies with profits above GBP 250,000. A small profits rate of 19% generally applies to companies with profits up to GBP 50,000, and marginal relief may apply between GBP 50,000 and GBP 250,000. Resident companies are generally taxed on worldwide profits, subject to relevant exemptions and treaty rules.
2.
United Kingdom VAT
United Kingdom VAT Overview:
VAT declaration and payment
- The standard tax rate of 20% applies to most goods and services. Domestic fuel, electricity, and certain tax-reduced goods are subject to 5% VAT. Some small traders (with a supply of less than £150,000 per year) may apply a flat rate for a specific industry to calculate VAT.
- Most exports, food, public transport, books and publications (including electronic publications since May 1, 2020) and certain essential goods and services are subject to zero tax rates. Some land, insurance, financial services, gaming and betting, education, certain sports services, cultural services, health and welfare are exempt.
- VAT is deductible for costs incurred for zero-rated supplies, but not for costs incurred for tax-exempt supplies.
- VAT applicable rules and regional rules are different from direct taxes. If goods or services are provided in the United Kingdom and a person or business outside the United Kingdom does not have a place of business in the United Kingdom, they may be required to register for VAT in the United Kingdom.
- In the case of goods, the basic principle is that the supply of goods should be taxed at the physical place at the time of supply. In the case of services, the basic guideline is to pay VAT in the jurisdiction of the customer. For B2C supplies, the basic principle is that VAT is paid in the jurisdiction of the consumer's legal jurisdiction.
VAT declaration and payment
- The VAT return must be completed on a scheduled time, usually every 3 months. Larger businesses may be required to file monthly statements or make monthly payments. Small businesses can apply for an annual return. In general, VAT returns must be filed 30 days after the expiration of the deadline.
- Some small e-merchants (supply less than £150,000 per annum) may use a specific industry flat rate to calculate VAT. From 1 April 2019, businesses with turnover exceeding the United Kingdom VAT registration threshold are required to keep electronic records.
- Taxable taxpayers with an annual turnover (including VAT) of £1,350,000 or less can carry out annual accounting. Cash accounting is available to taxpayers with an annual turnover (including VAT) of £1,350,000 or less. In addition, a flat rate scheme has been introduced for small businesses, with the aim of simplifying the accounting process for VAT.
3.
United Kingdom labour tax
The United Kingdom does not levy a separate payroll tax apart from employer National Insurance contributions and normal payroll withholding obligations. Employers are responsible for operating PAYE, withholding income tax and employee contributions, and paying employer National Insurance contributions under the applicable rules.
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© 2026 - 奕資環球（愛爾蘭）有限公司。版權所有。
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