The United Kingdom

 


The United Kingdom has a long and rich history which is combined with a modern, liberal and forward thinking mentality. The United Kingdom is one of the world’s leading financial and services centers, with an economy which continues to go from strength to strength. Doing business in the United Kingdom offers access to the following key benefits.


General


• The United Kingdom’s economy is among the most vibrant and exciting in the world. With free and liberalized policies and protocols protecting its growth, the United Kingdom remains an attractive place for doing business.
• The United Kingdom often has a prominent place in the operations of multinational companies, whereby London is widely considered as one of the commercial, financial, and legal hubs.
• The financial services sector leads the world in its innovation and forward thinking. 
• There is a constantly growing marketplace with a demand for goods and services. The population of the United Kingdom is made up of a wide variety of communities from across the globe, each with their own traditions, customs and requirements, creating a need for diverse markets. Anyone doing business in the United Kingdom will be able to benefit from this multiculturalism, either through hiring diverse employees and harnessing their unique perspectives and experience or through offering products to communities with ever changing and increasing needs.


The United Kingdom is still a major gateway to the rest of Europe. As a key trading partner within the European Union (EU), and with links to the Member-States of the Commonwealth, England, Scotland, Northern Ireland and Wales are perfect locations from which to launch business operations on a global scale.



Tax


The United Kingdom Government is committed to creating the most competitive tax regime in the G20 and has reformed the corporate tax system to make it more attractive to international businesses. Key features of the corporation tax regime that makes the United Kingdom an attractive location to do business and for holding investments in subsidiaries:

• One of the lowest corporation tax rates in the G20 currently 19%, rate is being reduced to 17% from 2020.
• Exemption for dividends received by UK resident companies.
• No withholding tax/distribution tax on dividends paid to shareholders.
• Research and Development incentives.
• Patent box regime, allowing 10% tax rate on some profits.
• Tax incentives for companies operating in the creative industry.
• No capital gains tax on disposal of shares in trading subsidiaries (minimum shareholding of 10% in ordinary shares).
• Exemption for certain foreign branch profits from tax in the UK.
• Access to an extensive tax treaty network.
• Clear anti-avoidance legislations.

The outcome of Brexit is still uncertain. The United Kingdom is currently in discussions with the EU to decide what position the UK will be in upon leaving the EU. We do not expect to see material changes to the domestic VAT rules, but the international picture could change dramatically in terms of both the VAT treatments of international trade and the associated compliance rules. In the meantime, businesses located in the UK should explore special procedures available to minimize the potential VAT and custom duty impact and ensure their supply chains are fit for purpose post-Brexit.

Amsterdam
Kabelweg 37
1014 BA Amsterdam
1001 JD Amsterdam
Tel: +31 20 421 4361
Fax: +31 20 422 1758

London
Suite 1, 3rd Floor
11-12 St. James’s Square
London SW1Y 4LB
United Kingdom
T: (+44) 208 9355241