Europe · GBP
United Kingdom
Reviewed 2026-06-21
Top income tax
45%
Self-employed SS
Yes
VAT
20%
Capital gains
24%
Exit tax
No
Nomad visa
No
49
/ 100
Tax efficiency28
Ease to enter63
Ease to exit65
Cost of living63
Internet33
English100
The UK taxes residents on worldwide income through a progressive system topping out at 45 percent, plus separate Scottish bands and National Insurance on earnings. Solo founders pay 25 percent corporation tax above 250,000 pounds (19 percent under 50,000), with capital gains at up to 24 percent and a 20 percent VAT. A new 4-year Foreign Income and Gains regime from April 2025 lets recent arrivals who were non-resident for the prior decade shelter offshore income, but there is no digital nomad visa and no individual exit tax at present.
Personal income tax
Income tax structureProgressive
Top income tax rate45%
Entry income tax rate20%
Top rate threshold$166,000
Taxation basisWorldwide
Local/state income taxYes
Social security
Self-employed social securityYes
Employee SS rate8%
Employer SS rate15%
Indirect & other taxes
VAT standard rate20%
Capital gains rate24%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxYes
Inheritance top rate40%
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate25%
WHT on dividends0%
CFC rulesYes
Incentives & special regimes
Special expat regimeYes
Expat regime name4-year Foreign Income and Gains (FIG) regime for new arrivals
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup4 / 5
Lifestyle
Cost of living index67.8
Internet speed150 Mbps
English proficiencyHigh
Civil liberties88
Sources
- PwC Worldwide Tax Summaries — United Kingdom Individual: Other taxes (NIC, VAT, CGT)
- GOV.UK — Income Tax rates and Personal Allowances
- PwC Worldwide Tax Summaries — United Kingdom Corporate: Taxes on corporate income
- GOV.UK — HS266 Foreign Income and Gains (FIG) regime
- GOV.UK — Innovator Founder visa: Overview
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.