LU · EuropeGB · Europe
Luxembourg vs United Kingdom: tax rates compared
Luxembourg has an income tax rate of 45.8%, 0.8pp above United Kingdom's 45%. The 200-country average is 28%: both sit above it.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | LU | GB | Difference |
|---|---|---|---|
| Income Tax | 45.8% | 45% | LU +0.8 pp |
| Corporate Tax | 23.9% | 25% | GB +1.1 pp |
| VAT | 17% | 20% | GB +3 pp |
| Capital Gains Tax | 0% | 24% | GB +24 pplargest gap |
| Crypto Tax | 0% | 24% | GB +24 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| United Kingdom | 45% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +0.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| United Kingdom | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −1.1 pp | United Kingdom higher |
United Kingdom has a corporate tax rate of 25%, 1.1pp above Luxembourg's 23.9%. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| United Kingdom | 20% | Source: PWC Worldwide Tax Summaries — United Kingdom (Corporate, Other taxes) · as of 2025-12-24 |
| Difference | −3 pp | United Kingdom higher |
United Kingdom has a VAT rate of 20%, 3pp above Luxembourg's 17%. The 181-country average is 15%: both sit above it. Luxembourg's figure is dated 2026-01-13 and United Kingdom's 2025-12-24, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| United Kingdom | 24% | Source: GOV.UK (HMRC) — Capital Gains Tax: rates · as of 2024-10-30 |
| Difference | −24 pp | United Kingdom higher |
United Kingdom has a capital gains tax rate of 24%, 24pp above Luxembourg's 0%. The 175-country average is 10.3%: Luxembourg sits below it, United Kingdom sits above it. Luxembourg's figure is dated 2026-01-13 and United Kingdom's 2024-10-30, so the two rates come from different data vintages.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: Luxembourg Direct Tax Administration (Administration des contributions directes) — Circular L.I.R. n° 14/5 – 99/3 – 99bis/3 (26 July 2018), "Monnaies virtuelles" · as of 2018-07-26 |
| United Kingdom | 24% | Source: GOV.UK (HMRC) — Check if you need to pay tax when you sell cryptoassets · as of 2025-05-29 |
| Difference | −24 pp | United Kingdom higher |
United Kingdom has a crypto tax rate of 24%, 24pp above Luxembourg's 0%. The 88-country average is 13%: Luxembourg sits below it, United Kingdom sits above it. Luxembourg's figure is dated 2018-07-26 and United Kingdom's 2025-05-29, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| United Kingdom | 0% | Source: PWC Worldwide Tax Summaries — United Kingdom (Individual, Other taxes) · as of 2025-12-24 |
| Difference | 0 pp | displayed rates match |
Luxembourg and United Kingdom share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it. Luxembourg's figure is dated 2026-01-13 and United Kingdom's 2025-12-24, so the two rates come from different data vintages.