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 the past decade, tax rates have been reduced.
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 standard tax rate of 28%, which can be cut to 21%, again if certain conditions are met
- Double tax relief for foreign tax paid on dividends