United Kingdom — corporate tax, VAT, and dividend treatment
United Kingdom corporate income tax (25%), VAT (20%), and dividend withholding (0%), with cross-country context.
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 |
Cross-country context
| Corporate income tax | 25% |
|---|---|
| Median across covered countries | 22 |
| Lowest in the data set | 9 (United Arab Emirates) |
| Highest in the data set | 30 (Germany) |
| Rank within the data set | #10 of 13 |
Try the calculator with United Kingdom pre-selected
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.
Related
Other countries in the region
Featured ranking
Country profile
Sources
- HM Revenue & Customs — HM Revenue & Customs — UK Corporation Tax (accessed )
- OECD — OECD — economic and tax statistics (accessed )
- PricewaterhouseCoopers — PwC Worldwide Tax Summaries (accessed )
- Stripe — Stripe — supported countries (accessed )
- Wise — Wise — service availability (accessed )
Last updated: