United Kingdom

United Kingdom's Rankings
CategoryRankScore
Overall Rank2560.07
Corporate Taxes1561.57
Individual Taxes2264.1
Consumption Taxes2264.74
Property Taxes3144.63
International Tax Rules1085.22

The United Kingdom ranks 25th overall on the 2019 International Tax Competitiveness Index, one place better than in 2018.


Strengths

  • The corporate income tax rate is 19 percent, below the OECD average (23.6 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 129 countries is the broadest in the OECD.

Weaknesses

  • The personal income tax rate on dividends is 38.1 percent, well above the OECD average (23.8 percent).
  • Corporations are severely limited in the investment costs they are able to write off, particularly for industrial buildings.
  • The VAT of 20 percent applies to less than half of the potential consumption tax base.

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