United Kingdom income tax

United Kingdom tax calculator

Enter your income to estimate what you would pay in United Kingdom, as an employee or running your own company, and see the best-value cities. Get the full breakdown plus a vetted advisor by email.

How much is income tax in United Kingdom?

United Kingdom taxes personal income at rates up to 45%. First 4 years as a new resident: foreign income and gains are exempt under the FIG regime. Worldwide taxation after that.

Compiled by MyNomadWorld for United Kingdom and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.

United Kingdom expat & digital-nomad tax regime

Under the FIG 4-year foreign income exemption regime, a qualifying new resident or foreign-income remote worker pays an effective rate of about 0% instead of the 45% headline. This benefit is temporary or conditional (it runs for a limited period or requires you to stay non-resident), so treat it as a head start, not a permanent zero.

Official source: PwC United Kingdom

Capital gains, wealth & property tax

• Capital gains: 18% basic-rate / 24% higher-rate (from 30 Oct 2024, all assets incl. residential property). Business Asset Disposal Relief rate 14% (2025/26).
• Wealth tax: No annual net wealth tax

Inheritance & gift tax in United Kingdom

IHT 40% on estate above nil-rate band Spouse/civil-partner transfers exempt; £325k nil-rate band + up to £175k residence nil-rate band passing home to direct descendants

Corporate tax & VAT

The standard corporate profits tax is 25%.

How to become a tax resident of United Kingdom

Statutory Residence Test (automatic UK/overseas tests + sufficient-ties test based on days and connections).

Cost of living & lifestyle

Cost of living is about 89% of the US level, with average purchasing power near $64k (PPP). Pick a city below to see its monthly climate and cost.

Banking in United Kingdom

You will want a local or multi-currency account for rent, bills and getting paid. See our guide to the best banks in United Kingdom.

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Wise link is an affiliate link; we may earn a commission at no cost to you.

Climate & cost by city

Average monthly temperature (°C) and rainfall. Climate: Open-Meteo ERA5; cost of living: World Bank PPP (same-year pairing), omitted where unavailable.

United Kingdom tax treaties

United Kingdom maintains around 130 double taxation treaties in force. They generally follow the OECD Model Convention and reduce withholding tax on cross-border dividends, interest and royalties, so the same income is not taxed twice when you move, invest or earn across borders. That is a broad network, useful for internationally mobile earners and investors.

Major treaty partners

Chips with a link open the full withholding-tax detail for that treaty pair.

Approximate size of the DTA network; confirm the specific treaty and its terms before relying on it.

United Kingdom tax treaty guides

Detailed double-tax-treaty guides (withholding rates on dividends, interest and royalties) are available for 59 of United Kingdom's partners:

Albania · Algeria · Argentina · Armenia · Azerbaijan · Bangladesh · Bolivia · Bosnia and Herzegovina · Botswana · China · Colombia · Egypt · Eswatini · Ethiopia · France · Gambia · Georgia · Germany · Ghana · Guyana · India · Indonesia · Ivory Coast · Jordan · Kenya · Lesotho · Libya · Malawi · Mauritius · Mexico · Moldova · Mongolia · Morocco · Myanmar · Namibia · Nigeria · North Macedonia · Pakistan · Papua New Guinea · Philippines · Senegal · Sierra Leone · South Africa · Spain · Sri Lanka · Sudan · Tajikistan · Thailand · Trinidad and Tobago · Tunisia · Turkmenistan · Uganda · Ukraine · United States · Uzbekistan · Venezuela · Vietnam · Zambia · Zimbabwe