Ireland vs United Kingdom taxes (2026): company tax and CGT

Ireland vs United Kingdom tax rates at a glance

Tax	🇮🇪 Ireland	🇬🇧 United Kingdom
Income tax	Standard rate: 20% Higher rate: 40% Single standard-rate cut-off: About EUR 44,000 USC bands: 0.5% / 2% / 3% / 8% Employee PRSI: 4.2% then 4.35% Employer PRSI: About 9% / 11.25%+	Personal income tax: 20% to 45% Personal allowance: GBP 12,570 Scottish top rate: 48% Employee National Insurance: 8% Employer National Insurance: 15%
Corporate tax	Trading profits: 12.5% Passive / non-trading: 25% Company capital gains: 33% Pillar Two minimum: 15% Knowledge Development Box: Effective 10%	Corporation tax: 25% Small profits rate: 19% Marginal relief band: GBP 50,000 to GBP 250,000 VAT: 20%
Capital gains tax	Standard CGT: 33% Annual individual exemption: EUR 1,270 Certain funds / policies: 40% Corporate gains: Often 33%	Annual exempt amount: GBP 3,000 Basic rate CGT: 18% Higher and additional rate CGT: 24% Business Asset Disposal Relief: 18%
Dividend tax	Dividend withholding tax: 25% Standard income tax on dividends: 20% / 40% USC on dividends: Often applies Non-resident relief: Treaty / exemption dependent	Dividend allowance: GBP 500 Basic rate dividend tax: 10.75% Higher rate dividend tax: 35.75% Additional rate dividend tax: 39.35% Withholding tax on ordinary dividends: 0%
Wealth tax	Net wealth tax: 0% Annual asset tax: 0% Local property tax: Applies	Net wealth tax: 0% Inheritance tax: 40% Capital gains tax: 24% ATED scope: GBP 500,000+
Inheritance / estate tax	CAT rate: 33% Group A: EUR 400,000 free then 33% Group B: EUR 40,000 free then 33% Group C: EUR 20,000 free then 33% Spouse / civil partner: Generally exempt	Standard inheritance tax: 40% Nil-rate band: GBP 325,000 Residence nil-rate band: GBP 175,000 Lifetime gifts: Potentially 0% to 40%
VAT / GST / sales tax	VAT: 23%	VAT: 20%

Who wins on each tax

Personal income taxUnited Kingdom

Ireland's 40% income tax is layered with USC and PRSI; the UK top rate is 45% but the overall answer depends on earnings and location.

Corporate taxIreland

Ireland generally levies 12.5% on trading income, compared with UK rates of 19% to 25%.

Capital gains taxUnited Kingdom

Ireland generally charges 33% on chargeable gains after a EUR 1,270 annual exemption, with principal-private-residence and business reliefs; UK gains are generally 18% or 24% after a GBP 3,000 annual exemption, with separate business-disposal reliefs.

Dividend taxUnited Kingdom

The UK has no ordinary withholding on standard company dividends, although resident shareholders pay 10.75%, 35.75% or 39.35% above the GBP 500 allowance; Ireland generally withholds 25% and taxes resident dividends as income plus USC.

Market scaleUnited Kingdom

The UK has the larger domestic economy and a deeper capital-market ecosystem.

The verdict

Ireland's 12.5% trading-income rate is its defining advantage for qualifying operating companies, although personal remuneration and substance cannot be ignored.

The UK is generally more attractive for a private exit, with 18% or 24% capital-gains rates versus Ireland's 33%.

Choose Ireland for a genuine trading company; choose the UK when capital markets, market size or a lower standard exit tax matter more.

How to read this comparison

Ireland and the UK compete for internationally oriented businesses, but their company and exit-tax profiles point in different directions.

Frequently asked questions

Is Ireland better than the UK for a company?

Ireland can be better for a qualifying trading company because of its 12.5% rate. The UK may be preferable when commercial scale, owner remuneration or exit taxation drives the decision.