UK
Executive Summary
The
United Kingdom forms part of the British Isles,
a group of islands situated in the north-west
of Europe. Officially called the United Kingdom
of Great Britain and Northern Ireland, the three
jurisdictions that make up “Great Britain”
are England, Scotland and Wales.
The
UK population is estimated to be just over 63m
in 2012. The main language is English, although
around a quarter of the population of Wales speaks
Welsh, and Gaelic is spoken by some 60,000 Scots.
The
UK government consists of a constitutional monarchy
and a bicameral parliament, the House of Commons
and the House of Lords. The current head of church,
state and the Commonwealth (which is made up of
former British colonies) is Queen Elizabeth II.
Members
of the House of Commons are elected by popular
vote for a period of four-five years. The current
prime minister is David Cameron.
The
services sector is the largest in the UK economy
in terms of GDP, and is dominated by banking,
finance and insurance, predominantly based in
the City of London. The manufacturing sector has
been in decline over recent decades, with services
taking an ever larger share.
The
UK is a key member of the Group of Seven (G7)
industrialized nations, and is also a member of
the European Union. Its currency is the Pound
Sterling (GBP); there are currently no plans for
the UK to join the euro.
The
United Kingdom has excellent telecommunications,
with widespread land telephone, mobile telephone
and Internet use. The country has extensive rail
and road networks, including high-speed rail links
to Europe via the Channel Tunnel. There are a
number of airports in the UK, with London Heathrow
said to be the world’s busiest in terms
of passenger numbers. Container ports include
Felixstowe (the largest), Liverpool, London and
Southampton. The Port of Dover is an essential
ferry link with Europe in terms of passenger and
cargo transport.
Corporation tax is charged at a rate of 24% from
2012 (26% in 2011), although a lower rate of 20%
applies to taxable profits of up to GBP300,000;
this lower rate was 21% prior to April 2011. Marginal
rate relief may apply where taxable profit falls
between GBP300,000 and GBP1.5m, which can reduce
the company’s corporation tax liability.
Another reduced corporation tax rate of 10% applies
from April 2010 to profits derived from UK patents.
From
April 6, 2010, the top rate of personal income
tax is 50% on income of over GBP150,000. Capital
gains are taxed at 18%, subject to an annual exemption
of GBP10,100.
The
UK has well-developed trust law, with distinct
tax advantages, especially in relation to inheritance
tax.
In
January 2010, the government announced the introduction
of allowances of up to GBP160m per oil or gas
field in a remote region to the west of Shetland,
in deep Atlantic waters. The aim is to encourage
oil and gas producers to tap into some of the
UK’s remaining oil and gas reserves.
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