UK vs Thailand taxes (2026): LTR visas, 180-day tests and FIG

United Kingdom vs Thailand tax rates at a glance

Tax	🇬🇧 United Kingdom	🇹🇭 Thailand
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%	Personal income tax: 0% to 35% Top bracket: 35% Foreign income: Taxable if remitted Social security: 5% (THB 750 max)
Corporate tax	Corporation tax: 25% Small profits rate: 19% Marginal relief band: GBP 50,000 to GBP 250,000 VAT: 20%	Corporate income tax: 20% SME corporate tax: 0% / 15% / 20% Foreign-company WHT: 15% Petroleum income tax: 50% Top-up tax: 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%	Capital gains tax: 0% to 35% Listed share gains: 0% Crypto gains: 0% Ordinary income treatment: 35%
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%	Dividend withholding tax: 10% Resident individuals: 10% Resident corporations: 0% / 10% Non-residents: 10%
Wealth tax	Net wealth tax: 0% Inheritance tax: 40% Capital gains tax: 24% ATED scope: GBP 500,000+	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%
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%	Inheritance tax: 10% Ascendants and descendants: 5% Spouse: 0% Threshold: THB 100 million
VAT / GST / sales tax	VAT: 20%	VAT: 7% (temporary)
Standard VAT	20%	7% (temporary)
Residence trigger	UK statutory residence test; FIG if eligible	Generally 180 days; remittance of foreign income from 2024

Who wins on each tax

Personal income taxThailand

Thailand's top personal rate is 35%, below the UK's 45% (48% in Scotland) plus National Insurance.

Corporate taxThailand

Thailand's standard corporate rate is 20%, below the UK's 25% main rate (19% small profits).

Capital gains taxThailand

Thailand has no separate general CGT; gains can still be taxed as income. UK individuals pay 18% or 24% from 6 April 2026.

VATThailand

Thai VAT is 7% on a temporary basis through 30 September 2026 unless extended. UK VAT is 20%.

Inheritance taxThailand

Thailand charges 10% or 5% inheritance tax in defined cases. UK IHT is 40% and can cover worldwide assets for long-term residents.

The verdict

Thailand is lighter on several headlines: personal income tax tops at 35%, corporate tax is 20%, VAT is temporarily 7% through 30 September 2026 unless extended, and there is no separate general CGT. The UK reaches 45% income tax (48% in Scotland), 25% main corporation tax, 20% VAT and 18%/24% individual CGT from 6 April 2026.

The constraint is days and remittance, not the visa sticker. Thai tax residence is generally 180 days in a calendar year. Foreign income earned from 1 January 2024 is taxable when remitted by a Thai resident. LTR and other long-stay (LIV) routes can support a stay; they do not, on our country pages, rewrite those tax tests.

Choose Thailand if Thai-source work or a genuine 180-day life is the plan and you can control remittances. Choose the UK for market access or a four-year foreign-income-and-gains claim after ten years outside the UK. Thai-source salary remains taxable either way, and UK-source work remains taxable in the UK.

How to read this comparison

Thailand looks cheaper than the United Kingdom on almost every published rate. The mistake is treating a long-stay visa as a tax election.

Thai personal income tax is 0% to 35%. Corporate income tax is generally 20%. VAT is 7% until 30 September 2026 unless the relief is extended again. There is no annual net wealth tax and no separate general capital-gains tax, although gains can still be taxed as ordinary income. Inheritance tax exists at 10% or 5% on defined assets. The UK stack is heavier: 45% income tax (48% in Scotland), National Insurance on employment, 19% or 25% corporation tax, 18% or 24% individual CGT from 6 April 2026, dividend rates of 10.75% / 35.75% / 39.35%, 20% VAT and 40% inheritance tax.

Residence is the constraint named in this pair. Thailand generally treats an individual as tax resident at 180 days in a calendar year. There are no special concessions on our Thailand income-tax page for foreigners or short-term residents. LTR and other long-stay (LIV) visas can make it lawful to remain; they do not, by themselves, switch off Thai-source payroll tax or the remittance rule. Foreign income earned from 1 January 2024 can become taxable when a Thai resident remits it in that year or a later year. Timing of transfers is therefore part of the tax return, not a lifestyle footnote.

The UK uses the statutory residence test. A qualifying newcomer can claim the four-year foreign-income-and-gains regime after at least ten consecutive non-UK tax years. That relief is about eligible foreign income and gains, not about ignoring UK-source salary. Long-term UK residence can still put worldwide assets into 40% IHT. Moving between the two countries without counting days, remittances and UK-source work is how people end up filing in both.

Which one fits you

🇬🇧 Choose United Kingdom if you're a…

Founders who need UK customers, banks or English-law contracts
People who qualify for the four-year foreign-income-and-gains regime
Families already inside the UK treaty and payroll system

🇹🇭 Choose Thailand if you're a…

Residents who can live the 180-day test rather than just hold a visa
Companies comparing a 20% Thai rate with 25% UK corporation tax
People who can keep post-2023 foreign income outside Thailand until remittance is planned

Frequently asked questions

Is Thailand lower tax than the UK?

On the published rates, yes: 35% personal, 20% corporate, 7% temporary VAT and no separate general CGT. Thai-source income, remittance of foreign income from 2024 and the 180-day residence test still decide the real bill.

Does an LTR or LIV visa make me Thai tax resident?

Not by itself. Thai tax residence is generally 180 days or more in a calendar year. Long-stay visas support immigration. They do not automatically replace the days test or the remittance rule for foreign income earned from 2024.

How does Thailand tax foreign income compared with UK FIG?

Thai residents can be taxed on foreign income earned from 1 January 2024 when it is remitted, including in a later year. UK FIG can relieve eligible foreign income and gains for a qualifying person in the first four UK tax years after ten consecutive non-UK years.

Does Thailand have inheritance tax?

Yes, at 10% or 5% on defined assets above thresholds. That is still well below the UK's 40% IHT, which can include worldwide assets for long-term UK residents.

United Kingdom vs Thailand taxes