UK - Tax
The UK’s tax regime holds a number of benefits for international companies which want to establish businesses in this jurisdiction. The UK has over 125 tax treaties with other countries – no other country in the world has as many.
These treaties reduce - and in some cases completely eliminate - withholding tax (WHT). Dividend payments by UK companies are not subject to WHT. Other features include:
- UK tax exemption on qualifying foreign dividends
- Capital gains exemption for the disposal of qualifying participations
- Corporation tax rates of 20% for qualifying small companies, if certain conditions are met
- Tax depreciation available for purchased intangible assets, including goodwill and trademarks
- Reduction or elimination of WHT on interest and royalties paid to residents in tax treaty countries, under certain conditions
Pearse Trust’s London staff are experienced in advising international clients on how best to utilise the UK’s tax reliefs.