United Kingdom — corporate tax, VAT, and dividend treatment
United Kingdom corporate income tax (25%), VAT (20%), and dividend withholding (0%), with cross-country context.
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Country notes
Main rate of corporation tax is 25% on profits above £250,000. The small profits rate of 19% applies on augmented profits below £50,000. Marginal relief applies between £50,000 and £250,000 of augmented profits. Both rates remain at 25% and 19% for the financial year beginning 1 April 2026.
Key data
| Corporate income tax | 25% |
|---|---|
| Standard VAT | 20% |
| Dividend withholding (default) | 0% |
| Currency | GBP |
| EU member | No |
Quick answer
United Kingdom's corporate income tax is 25% — worse than the covered-country median (22%) and equal to the EU-member median (25%). It ranks #10 of 13 (lower is better).
Where United Kingdom stands
- United Kingdom — Corporate income tax
- 25%
- Rank
- #10 of 13
- Better than
- 25% of covered countries
- Covered-country median
- 22%
- EU-member median
- 25%
- Best (United Arab Emirates)
- 9%
- Highest (Germany)
- 30%
Regional peers — Europe
Europe countries covered by GeoBusinessIQ, ordered by Corporate income tax (lower is better).
| Country | Corporate income tax |
|---|---|
| Poland | 19% |
| Portugal | 19% |
| Czech Republic | 21% |
| Estonia | 22% |
| France | 25% |
| Spain | 25% |
| United Kingdom | 25% |
| Netherlands | 25.8% |
| Germany | 30% |
How this context is computed
Context is computed from the GeoBusinessIQ country dataset using Corporate income tax (lower is better). Median is a simple median across all covered countries; the EU-member median covers EU members only. Figures are descriptive data drawn from the cited sources — not tax, accounting, or legal advice.
Model the numbers for United Kingdom
Methodology
Applies the headline corporate income tax rate from the country profile to the entered profit before tax. Reduced rates, SME thresholds, surtaxes, dividend layers, and jurisdiction-specific deductions are not modelled. Result is an estimate for orientation, not tax advice.
These calculations are informational estimates based on headline rates and transparent assumptions — not tax, accounting, or legal advice. Verify with a qualified local advisor before relying on the results.
Data limitations
- Corporate tax figures apply the headline statutory rate only — they exclude deductions, loss carry-forward, incentives, local surtaxes, and effective-rate timing.
- VAT figures are standard rates only; reduced and zero rates, registration thresholds, and sector exemptions are not modelled.
- Dividend tax reflects the default non-treaty rate; treaty relief and participation exemptions are not modelled.
Related
United Kingdom across topics
Best-country guides
Rankings
Comparisons
Methodology
Country profile
Other countries in Europe
Sources
- HM Revenue & Customs — HM Revenue & Customs — UK Corporation Tax (accessed ; reviewed )Covers: UK Corporation Tax rates and rules.Why it matters: Primary-authority reference for the United Kingdom corporate tax rate in the dataset.
- OECD — OECD — economic and tax statistics (accessed ; reviewed )Covers: Comparable corporate tax, statutory rate, and economic indicators across member and partner economies.Does not cover: Effective tax rates, deductions and incentives, local surtaxes, and personal residency rules.Why it matters: Used as a cross-country baseline to sanity-check rates against primary tax-authority figures.Review cadence: Annual, plus on major statutory changes.
- PricewaterhouseCoopers — PwC Worldwide Tax Summaries (accessed ; reviewed )Covers: Corporate income tax, VAT, and dividend withholding rates across most covered jurisdictions.Does not cover: Your specific effective rate, bespoke incentives, rulings, or transactions requiring professional advice.Why it matters: Used to triangulate rates against primary tax-authority sources, not as the sole authority.Review cadence: Updated by the publisher per tax year; re-checked each data review.
- Stripe — Stripe — supported countries (accessed ; reviewed )Covers: Countries where Stripe supports first-party account creation.Does not cover: Per-account approval outcomes, supported business categories, or pricing; availability can change without notice.Why it matters: Used as the primary signal for the stripeAvailable field driving payments-weighted scorers.Review cadence: As published by the vendor; re-checked each data review.
- Wise — Wise — service availability (accessed ; reviewed )Covers: Countries where Wise Business multi-currency accounts are available.Does not cover: Individual onboarding decisions, feature availability per region, or fees; availability can change over time.Why it matters: Used for the wiseAvailable field, the EMI-fallback signal in banking and payments scorers.Review cadence: As published by the vendor; re-checked each data review.
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