The UK has a strong tradition of attracting international businesses which are expanding their operations or want a footprint in Europe. The UK has the most extensive tax treaty network in the world. Over recent years, the main corporate tax rate has been reduced significantly.
The UK holds a number of other key attractions for those who wish to establish businesses, among them:
- No withholding tax on dividends, irrespective of where the shareholder is resident;
- UK tax exemption on qualifying foreign dividends;
- Capital gains exemption where a UK resident company sells shares, if certain conditions apply;
- A small profits corporation tax rate of 20%, and a main corporation tax rate of 23%;
- Double tax relief for foreign tax paid on dividends