United Kingdom - Overview (2024)

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Overview

Last reviewed - 08 July 2024

The United Kingdom (UK) is located off the north-western coast of continental Europe. The capital of the United Kingdom is London, and the official language is English.

The United Kingdom has historically played a leading role in developing parliamentary democracy and in advancing literature and science. Today, the United Kingdom is a modern and prosperous European nation. As one of five permanent members of the United Nations (UN) Security Council, a founding member of the North Atlantic Treaty Organisation (NATO), and a member of the Commonwealth, the United Kingdom pursues a global approach to foreign policy. The United Kingdom was a member of the European Union (EU) until 31 January 2020, although it always chose to remain outside the Economic and Monetary Union, and so retained the pound sterling (GBP) as its currency rather than adopting the euro. The transitional exit period ended on 31 December 2020, resulting in a number of changes as a consequence of various EU tax measures ceasing to apply.

The United Kingdom, a leading trading power and financial centre, is one of the quintet of trillion dollar economies of Western Europe. Services, particularly banking, insurance, and business services, account by far for the largest proportion of gross domestic product (GDP). Specialist engineering, aerospace, biotechnology, pharmaceuticals, and information technology are lead sectors, and the United Kingdom has relative strengths in the new digital technology sectors that have emerged over the past decade or so (AI, fintech, digital media, etc.), while the manufacturing industry continues to decline in importance. Agriculture is intensive, highly mechanised, and efficient by European standards, producing about 60% of food needs with less than 2% of the labour force. The United Kingdom has significant but declining natural gas and oil resources and is a net importer of energy.

PwC in the United Kingdom offers assurance, tax, and advisory services at multiple locations. PwC's tax consultancy helps businesses and individuals understand the impact of taxation on business decisions.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

25

Corporate income tax (CIT) due dates
CIT return due date

The tax return needs to be filed within one year from the end of the accounting period.

CIT final payment due date

Varies according to the size of the company making the payment. See the UK Corporate summary for more information.

CIT estimated payment due dates

Varies according to the size of the company making the payment. See the UK Corporate summary for more information.

Personal income tax (PIT) rates
Headline PIT rate (%)

45 (the basic rate starts at 20%, the higher rate is 40%, and the 45% rate is for income over GBP 125,140). Different rates apply for Scottish residents.

Personal income tax (PIT) due dates
PIT return due date

31 January following the end of the tax year.

PIT final payment due date

31 January following the end of the tax year.

PIT estimated payment due dates

Two instalments, on 31 January during the tax year and on 31 July following the tax year.

Value-added tax (VAT) rates
Standard VAT rate (%)

20

Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)

Resident: 0 / 20 / 20;

Non-resident: 0 / 20 / 20

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

Capital gains are subject to the normal corporation tax rate.

Headline individual capital gains tax rate (%)

See the United Kingdom's individual tax summary for capital gain rates.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Headline inheritance tax rate (%)

The standard inheritance tax rate is 40%. It’s only charged on the part of one's estate that’s above the nil rate band (currently GBP325,000). See the Other taxes section in the Individual tax summary.

Headline gift tax rate (%)

There is no specific gift tax in the UK. Instead, gifts made to individuals are subject to inheritance tax at rates up to 40% if the donor dies within seven years of making the gift. Gifts to any other entities (e.g. to trusts) can attract an immediate 20% IHT charge with a further charge if the individual dies within seven years of the gift.

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United Kingdom contacts

United Kingdom contacts
United Kingdom News

United Kingdom - Overview (4)

Laura Hinton

UK Head of Tax, PwC United Kingdom

United Kingdom - Overview (5)

David Roberts

UK Tax Knowledge Leader, PwC United Kingdom

+44 7901 978891

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United Kingdom - Overview (2024)

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