United Kingdom

United Kingdom's Rankings
CategoryRankScore
Overall Rank2261.81
Corporate Taxes1858.93
Individual Taxes2356.06
Consumption Taxes2264.27
Property Taxes3338.89
Crossborder Taxes1100

The United Kingdom ranks 22nd overall on the 2021 International Tax Competitiveness Index, the same as in 2020.


Strengths

  • The corporate income tax rate is 19 percent, below the OECD average (22.9 percent).
  • The UK has a territorial tax system exempting both foreign dividend and capital gains income without any country limitations.
  • The UK tax treaty network with 130 countries is the broadest in the OECD.

Weaknesses

  • The top personal income tax rate on dividends is 38.1 percent, well above the OECD average (24.1 percent).
  • The real property tax burden is among the highest in the OECD.
  • The VAT at a rate of 20 percent applies to less than half of the potential consumption tax base.

Learn more about the tax system in United Kingdom

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