United Kingdom

The United Kingdom (UK) is located off the north-western coast of continental Europe. The capital of the United Kingdom is London, and the official language is English.

The United Kingdom has historically played a leading role in developing parliamentary democracy and in advancing literature and science. Today, the United Kingdom is a modern and prosperous European nation. As one of five permanent members of the United Nations (UN) Security Council, a founding member of the North Atlantic Treaty Organisation (NATO), and a member of the Commonwealth, the United Kingdom pursues a global approach to foreign policy. The United Kingdom was a member of the European Union (EU) until 31 January 2020, although it always chose to remain outside the Economic and Monetary Union, and so retained the pound sterling (GBP) as its currency rather than adopting the euro. The transitional exit period ended on 31 December 2020, resulting in a number of changes as a consequence of various EU tax measures ceasing to apply.

On 22 September 2022, the government introduced the Retained EU Law (Revocation and Reform) Bill, which makes provision for significant changes to the status and operation of retained European law. However, the government has confirmed that any changes required to retained tax law will be made through a Finance Bill or secondary tax legislation. Separate provisions were made for retained EU law relating to value-added tax (VAT), excise, and customs duty in a future Finance Bill, and although at the time of writing, the November 2023 Finance Bill in which this legislation is contained is progressing through the House of Commons, the government has used a parliamentary mechanism, the Provisional Collection of Taxes Act 1968, to give legal force to a resolution concerning the interpretation of VAT and excise law, as a consequence of which UK VAT and Excise law which was in force prior to 1 January 2021 (EU Exit day) will continue to be interpreted in line with EU law principles. 

The United Kingdom, a leading trading power and financial centre, is one of the quintet of trillion dollar economies of Western Europe. Services, particularly banking, insurance, and business services, account by far for the largest proportion of gross domestic product (GDP). Specialist engineering, aerospace, biotechnology, pharmaceuticals, and information technology are lead sectors, and the United Kingdom has relative strengths in the new digital technology sectors that have emerged over the past decade or so (AI, fintech, digital media, etc.), while the manufacturing industry continues to decline in importance. Agriculture is intensive, highly mechanised, and efficient by European standards, producing about 60% of food needs with less than 2% of the labour force. The United Kingdom has significant but declining natural gas and oil resources and is a net importer of energy.

PwC in the United Kingdom offers assurance, tax, and advisory services at multiple locations. PwC's tax consultancy helps businesses and individuals understand the impact of taxation on business decisions.