Setting up in the UK

The UK is open for business. Over recent years, the Government has reformed the UK tax system to make it an attractive place for inbound investors and for groups to use as an intermediate holding company location.

The UK government remains committed to having the most competitive tax regime in the G20. Although the tax and regulatory environment might seem complex, RSM can work alongside you, providing support as you establish and grow your UK business.

Talking to RSM at an early stage means we can make sure you set up a structure that is right for you, taking into account your commercial objectives. We also offer outsourcing services to support you in fulfilling your UK compliance and filing obligations.

If you are considering investing, it is worth being aware of some of the key features of the UK tax system:

  • a low headline rate of corporate income tax of 20 per cent from 1 April 2015, expected to fall further to 19 per cent from 1 April 2017 and 18 per cent from 1 April 2020;
  • generous enhanced tax deductions for expenditure on research and development and a reduced tax rate on profits related to registered patents, both of which can dramatically reduce your company tax liability;
  • 100 per cent capital allowances for the first £500,000 of annual capital expenditure up to 31 December 2015 (£200,000 from 1 January 2016);
  • wide-ranging tax exemptions for dividend income received by companies and no withholding tax on dividends paid;
  • exemptions from tax on certain disposals of shareholdings in trading companies;
  • EU membership giving access to the benefits in EU tax directives for transactions with the other 27 EU member states; and
  • a wide network of tax treaties.

RSM can help you make the right decisions for your international operations, working seamlessly with our international network to ensure your tax strategy is aligned with your expansion into the UK.

Please do not hesitate to contact us to discuss how we can help your organisation plan the best way to expand into the United Kingdom.

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