Effective tax rates: Corporate tax statistics … expenditure Implicit in United Kingdom
United Kingdom: Effective tax rates: Corporate tax statistics … expenditure Implicit was -8.44 Percentage of taxable income in 2025. ▼ Falling
Effective tax rates for expenditure based tax incentives - Corporate in United Kingdom, 2019–2025
Source: Organisation for Economic Co-operation and Development. Measured in Percentage of taxable income.
Analysis
United Kingdom recorded -8.44 Percentage of taxable income for effective tax rates for expenditure based tax incentives - corporate in 2025. That is the lowest value across all 7 years on record.
The figure is down 52.1% over ten years.
That places United Kingdom 29th out of 50 countries with data for 2025, putting it in the middle of the range.
Effective tax rates: Corporate tax statistics … expenditure Implicit in United Kingdom, year by year
| Year | Percentage of taxable income | Change |
|---|---|---|
| 2019 | -5.55 Percentage of taxable income | — |
| 2020 | -5.92 Percentage of taxable income | +6.7% |
| 2021 | -5.98 Percentage of taxable income | +1.0% |
| 2022 | -5.98 Percentage of taxable income | -0.0% |
| 2023 | -8.44 Percentage of taxable income | +41.1% |
| 2024 | -8.44 Percentage of taxable income | -0.0% |
| 2025 | -8.44 Percentage of taxable income | -0.0% |
United Kingdom compared with similar countries
- United Kingdom's -8.44 Percentage of taxable income is below the median for high income countries, which is -7.82 Percentage of taxable income, 1.1× the median. (40 countries reporting)
- United Kingdom's -8.44 Percentage of taxable income is below the median for Europe & Central Asia, which is -8.4 Percentage of taxable income, 1.0× the median. (29 countries reporting)
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2010s | -5.55 Percentage of taxable income | -5.55 Percentage of taxable income | -5.55 Percentage of taxable income | 1 |
| 2020s | -7.2 Percentage of taxable income | -8.44 Percentage of taxable income | -5.92 Percentage of taxable income | 6 |
Countries ranked near United Kingdom
- 26 Belgium -7.5 Percentage of taxable income compare
- 27 Japan -8.14 Percentage of taxable income compare
- 28 Austria -8.4 Percentage of taxable income compare
- 30 New Zealand -8.57 Percentage of taxable income compare
- 31 Hong Kong -8.91 Percentage of taxable income compare
- 32 Thailand -9.07 Percentage of taxable income compare
More economy & growth data for United Kingdom
- Real gdp growth, annual growth rate 21.6 % change on previous year (2025)
- Africa's Development Dynamics (AfDD) Table 04 - Annual real GDP 1.14 Percent per annum (2029)
- Africa's Development Dynamics (AfDD) Table 02 - Annual real GDP 1.42 Percent per annum (2029)
- SDRs holdings, US dollar, annual growth rate 1.04 % change on previous year (2025)
- SDRs holdings, US dollar, per unit of GDP 0.0099 units per US$ of GDP (2025)
- SDRs holdings, US dollar, per capita 571.28 units per person (2025)
- SDRs holdings, SDR, annual growth rate -3.78 % change on previous year (2025)
- SDRs holdings, SDR, per unit of GDP 0.0072 units per US$ of GDP (2025)
- SDRs holdings, SDR, per capita 417.14 units per person (2025)
- IMF holdings of currency, US dollar, annual growth rate 3.15 % change on previous year (2025)
Frequently asked questions
- What is effective tax rates for expenditure based tax incentives - corporate in United Kingdom?
- Effective tax rates for expenditure based tax incentives - corporate in United Kingdom was -8.44 Percentage of taxable income in 2025, according to Organisation for Economic Co-operation and Development.
- What is the highest effective tax rates for expenditure based tax incentives - corporate recorded in United Kingdom?
- The highest recorded value was -5.55 Percentage of taxable income in 2019.
- What is the lowest effective tax rates for expenditure based tax incentives - corporate recorded in United Kingdom?
- The lowest recorded value was -8.44 Percentage of taxable income in 2023.
- How does United Kingdom rank for effective tax rates for expenditure based tax incentives - corporate?
- United Kingdom ranks 29th out of 50 countries with data for 2025.
- Is effective tax rates for expenditure based tax incentives - corporate rising or falling in United Kingdom?
- Over the last ten years it is down 52.1%. The long-run trend across the full record is falling.
- Where does this United Kingdom data come from?
- The figures come from Organisation for Economic Co-operation and Development, published as part of Effective tax rates for expenditure based tax incentives - Corporate tax statistics — Implicit subsidy (EATR). Statizoid updates them automatically from the source API.
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About this data
This table reports synthetic tax policy indicators that capture the effect of expenditure-based R&D tax incentives on firms’ investment costs: The EATR for R&D measures the impact of taxation on R&D investments that earn an economic profit. the user cost of capital for R&D measures the return that a firm needs to realise on an R&D investment before tax to offset all costs and taxes that arise from the investment, making zero economic profit. Further methodological information is available in the explanatory annex.