Enabling regulatory & legal environment

Of the major economies, the UK’s regulatory framework is leading. It sets international standards, is at the forefront of innovation, and offers the lowest corporation tax rate of all G20 economies.

With global challenges on the horizon – a return to stability and predictability will reinforce businesses' confidence in the UK.

Financial services executives world-wide perceive the UK as having the most favourable regulatory regime for financial services. The UK’s regulatory environment is at the forefront of innovation and provides the financial and professional services sector with an environment in which they can access regulatory expertise and effectively test their products and services. The UK’s financial centre is in close proximity to its political centre, and English Law is the world’s business law.

Whilst Singapore and Hong Kong have lower corporation and individual income tax rates, the UK has the most competitive tax rates of all major economies that are a global financial centre

Of the major economies, the UK has the most competitive tax framework. With the lowest corporation tax rate of all G20 economies, a simplified tax system, and a large international tax treaty network, the UK is a broadly more attractive destination for financial and professional services firms than the US, Germany, and Japan.

The UK has fewer controls on the movement of capital and people than the US and Germany, which makes it a more open global financial centre and supports businesses to trade internationally

The UK is a more open financial centre than Germany, Japan, and the US. Of these economies, the UK’s regulatory framework is most aligned with international standards. Low restrictions on services trade mean policy-induced trade costs for financial services firms located in the UK are lower than in most other markets.