UK vs France taxes (2026): income, CGT and dividends

United Kingdom vs France tax rates at a glance

Tax	🇬🇧 United Kingdom	🇫🇷 France
Income tax	Personal income tax: 20% to 45% Personal allowance: GBP 12,570 Scottish top rate: 48% Employee National Insurance: 8% Employer National Insurance: 15%	Tax-free band: EUR 11,600 Entry rate: 11% Top rate: 45% Exceptional high-income contribution: 3% / 4% Employment social charges: Material Investment flat tax (PFU): 31.4%
Corporate tax	Corporation tax: 25% Small profits rate: 19% Marginal relief band: GBP 50,000 to GBP 250,000 VAT: 20%	Standard corporate tax: 25% SME reduced rate: 15% on first EUR 42,500 Social contribution on CIT: 3.3% IP Box reduced rate: 10% QDMTT / Pillar Two: 15%
Capital gains tax	Annual exempt amount: GBP 3,000 Basic rate CGT: 18% Higher and additional rate CGT: 24% Business Asset Disposal Relief: 18%	Securities PFU: 31.4% PFU income-tax component: 12.8% PFU social levies: 18.6% Real-estate income tax: 19% Full property IR exemption: 22 years Full property social exemption: 30 years
Dividend tax	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%	Resident PFU total: 31.4% PFU income tax: 12.8% PFU social levies: 18.6% Non-resident individual WHT: 12.8% Progressive election: Optional Common dividend allowance on progressive route: 40%
Wealth tax	Net wealth tax: 0% Inheritance tax: 40% Capital gains tax: 24% ATED scope: GBP 500,000+	General net wealth tax: 0% IFI threshold: EUR 1,300,000 EUR 800,001 to EUR 1,300,000: 0.50% EUR 1,300,001 to EUR 2,570,000: 0.70% EUR 2,570,001 to EUR 5,000,000: 1.00% EUR 5,000,001 to EUR 10,000,000: 1.25% Above EUR 10,000,000: 1.50%
Inheritance / estate tax	Standard inheritance tax: 40% Nil-rate band: GBP 325,000 Residence nil-rate band: GBP 175,000 Lifetime gifts: Potentially 0% to 40%	Spouse / PACS partner: Exempt Children / parents: 5% - 45% Child allowance: EUR 100,000 Siblings: 35% / 45% Distant relatives / unrelated: 55% / 60%
VAT / GST / sales tax	VAT: 20%	VAT: 20% / 10% / 5.5% / 2.1%

Who wins on each tax

Personal income taxTie

The UK main rates and France's national scale both reach 45%; UK Scotland, French CEHR, social charges and household allowances make the actual bill different.

Corporate taxTie

The UK ranges from 19% for small profits to 25% for large profits; France is 25% generally with a 15% qualifying SME band and an additional social contribution for larger bills.

Capital gains taxUnited Kingdom

UK individual CGT is 18% or 24% in 2026/27, below France's 31.4% securities PFU, subject to residence, asset and relief rules.

Dividend taxTie

UK dividend rates are 10.75%, 35.75% and 39.35% after a GBP 500 allowance; France's resident PFU is 31.4%, so the marginal band and social charges decide.

Wealth and estate exposureTie

Neither has a broad net wealth tax, but France has IFI on real estate and the UK has 40% inheritance tax, ATED and other ownership charges.

The verdict

Both systems reach a 45% top ordinary rate in their main regimes, although Scotland has a 48% UK top rate and France can add CEHR and social charges.

The UK is usually better for listed-asset exits: 2026/27 CGT is 18% or 24%, compared with France's 31.4% PFU on most securities. UK company tax is 19%-25%, while France is generally 25%.

Choose the UK for investor liquidity and a flexible company ecosystem; choose France for household quotient treatment or an EU operating base. Estate, domicile, treaty and management-and-control rules need separate advice.

How to read this comparison

The UK usually wins on investment exits; France can win for a household-based employment move. The right answer depends on residence, social charges, estate planning and where a company is actually managed.

Frequently asked questions

Is the UK or France lower tax?

The UK is usually lower for securities gains and can be flexible for companies; France can be competitive for ordinary income depending on household shares. Social security, estate exposure and residence facts matter.

Does France or the UK have lower dividend tax?

There is no universal winner. The UK has lower basic-band dividend tax but a 39.35% additional rate, while France's 31.4% PFU includes social levies and can be compared with a progressive election.

United Kingdom vs France taxes