The United Kingdom (UK) is located off the northwestern coast of the European mainland, covering 240,000 sq km. The UK is the second largest economy in Europe after Germany, and it is the fifth largest in the world. 

The UK became a member of the European Union (EU) on January 1, 1973 and formally withdrew on January 31, 2020. The Brexit transition period came to an end on December 31, 2020, from which new rules on trade, travel and business between the UK and EU apply. Notwithstanding Brexit, the UK has a broad and diverse economy supported by a skilled workforce and a pro-business outlook. It is also an international hub and gateway to Europe for many businesses. The UK’s appeal as a place to do business derives from various factors.

The UK is a part of the Organization for Economic Co-operation and Development (OECD) and so includes in its international tax treaties the exchange of information clause between the relevant states.

Traditionally, the UK has been very pro-business in terms of red tape, tax and regulation. The economy contracted slightly following the 2016 Brexit Referendum, but this has not been as significant as was widely forecast. The situation was made significantly worse by COVID-19 and the government’s response to the pandemic. The travel, retail and entertainment sectors have been hit particularly hard whereas it appears both manufacturing and the service sectors have held up reasonably well. The International Monetary Fund (IMF) has forecast a rebound of 5.3% in 2021 and 5.1% in 2022.

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