Europe

United Kingdom tax rates 2026

A high-tax residence system that abolished the non-dom regime in 2025. In its place is a 4-year foreign income and gains (FIG) exemption for new arrivals.

Worldwide (residence-based) Last verified July 2026

The taxes

United Kingdom tax rates
Personal income (top)	45%The system is progressive, with an additional rate of 45% above GBP 125,140. From April 2026 the ordinary and upper dividend rates rose 2 percentage points, to 10.75% and 35.75%; the additional rate stays at 39.35%. Savings and property income rates rise from April 2027. Scotland sets its own bands, topping out at 48%.
Corporate income	25%
Capital gains	A higher rate of 24% applies to residential property and other assets, with an 18% basic rate. The annual exempt amount is GBP 3,000.
VAT	20%
Dividends (WHT)	0%
Interest (WHT)	20%
Royalties (WHT)	20%
Social security (employee)	8%
Social security (employer)	15%
Wealth tax	None
Inheritance / estate	40% on estates above the GBP 325,000 nil-rate band.
Property tax	Council tax, a local band-based charge, applies alongside business rates. SDLT is due on purchase.
Other	Large employers pay an apprenticeship levy of 0.5%. Employees pay National Insurance contributions (NIC) of 2% above the upper earnings limit.

How the system works

Tax system: Worldwide (residence-based)
Foreign income: Taxed (worldwide)
Taxes by citizenship: No
Exit tax: No
CFC rules: Yes
CRS: Participating

A special regime for new arrivals

Under the 4-year FIG regime, foreign income and gains are 100% relieved for the first 4 years of UK residence. It is available only after at least 10 consecutive tax years of non-residence.

Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.