United Kingdom

Key Corporate Information

1 Corporate
Tax Rate

There is also a small profits rate of 19% for companies whose profits do not exceed £50,000

2 Substance


3 Withholding

No withholding tax on dividends – there is a 20% withholding tax on interest and royalties, but this is often reduced in double tax treaties to zero

4 Participation
Holding Exemption

Yes 10% minimum holding – conditions apply but are very broad

5 Number of Double
Taxation Treaties

More than 130 making it one of the world’s largest networks

6 Time to
Establish Company

Two days from receipt of due diligence

7 Audit

A company may qualify for an audit exemption if it has at least 2 of the following,:

  1. An annual turnover of no more than £10.2 million
  2. Assets worth no more than £5.1 million
  3. 50 or fewer employees on average
8 Filing

Yes, a confirmation statement with the registrar, accounts filed within 9 months of the year end plus tax filings

9 Stamp Duty on
Transfer of Shares

None on issue of shares but 0.5% paid by the purchaser on transfer

10 Shareholder Information
Publicly Available


11 Other
Beneficial Factors

Capital Gains Tax Exemption:

  • There is an exemption on gains on substantial shareholdings in trading companies. Typically, you must hold at least 10% of the targets ordinary share capital. On all other gains corporation tax applies