🇬🇧 United Kingdom Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 45.0% Worldwide system

Corporate tax 25.0%

VAT 20.0% standard rate

Tax residency — 136 tax treaties

United Kingdom tax profile

Data year: 2026

Tax system: Worldwide UK residents are taxed on worldwide income and gains once resident for more than four tax years (from April 2025). New arrivals may use the four-year FIG regime. Scotland has different PIT rates.
Top PIT rate: 45.0%
Corporate tax rate: 25.0%
VAT: 20.0%
Capital gains tax: 24.0% Chargeable gains on most assets are taxed at 18% within the unused basic-rate band and 24% above it (same rates for residential property from 6 April 2026). Annual exempt amount GBP 3,000.
Social security (employee): 8.0%
Social security (employer): 15.0%
Social security cap (annual): GBP 50,270
Dividend withholding: 0.0%
Interest withholding: 20.0%
Royalty withholding: 20.0%
Inheritance tax: 40.0%
Treaty count: 136

Personal income

Special regimes
Name	Type	Rate/amount	Duration	Status
FIG Regime (Foreign Income & Gains) 4-year exemption on foreign income and gains for new UK tax residents, replacing...	Exemption	No rate or amount recorded	4yr	Active

Digital Services Tax Participation Exemption

Residency rules: The Statutory Residence Test (SRT) uses automatic UK-day counts (including 183+ days in the tax year), sufficient ties, and split-year rules; there is no single day threshold.
Exit tax: No
CFC rules: Yes CFC rules apply to UK-resident companies with >25% interest in low-taxed foreign subsidiaries

GOV.UK Income Tax rates (accessed Oct 9, 2026) PIT bands and personal allowance 2026/27 (England, Wales, NI)
HMRC employer rates 2026/27 (accessed Oct 9, 2026) PAYE thresholds, Class 1 NIC rates and upper earnings limit
HMRC Capital Gains Tax rates and allowances (accessed Oct 9, 2026) CGT 18%/24%, annual exempt amount £3,000
HMRC FIG regime guidance (accessed Oct 9, 2026) 4-year foreign income and gains regime eligibility and claims
PwC UK Tax Summary (accessed Oct 9, 2026) CIT 25%, WHT, FIG, residence basis from April 2025, dividend rate changes

Oct 9, 2026
- Tax residency threshold (days) 183 none
- Income tax brackets updated
- Special tax regimes updated
Refreshed for 2026/27 — verification date, data year, brackets, sources, CGT description, FIG official URLs, no fixed residency day threshold, treaty count 136 (https://www.gov.uk/income-tax-rates) (https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027).

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%