---
title: "London corporate taxes and occupancy taxes"
description: "Corporate, occupancy, and property taxes that affect London Class A office occupiers."
canonical: https://classa.info/cities/london/taxes-and-incentives
pageType: city-topic
lastUpdated: 2026-04-15T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> London has a 25% headline corporate tax rate; occupiers must also model property taxes and any local occupancy levies on top of rent.

## TL;DR

- Headline corporate tax: 25%.
- Property taxes / business rates / equivalents are a separate line item — model them explicitly.
- Cross-border occupiers should screen for local incentives (free zones, IP regimes, R&D credits).

# London corporate taxes and occupancy taxes

**London has a 25% headline corporate tax rate; occupiers must also model property taxes and any local occupancy levies on top of rent.**

## TL;DR

- Headline corporate tax: 25%.
- Property taxes / [business rates](/glossary/business-rates) / equivalents are a separate line item — model them explicitly.
- [Cross-border](/topics/cross-border-expansion) occupiers should screen for local incentives (free zones, IP regimes, R&D credits).

## Corporate tax

London levies an effective corporate tax of around 25% on most C-corps. Cross-border holding structures and IP regimes can materially change the effective rate; engage local tax counsel early.

## Occupancy and property taxes

UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of [rateable value](/glossary/rateable-value) annually, levied separately from rent and [service charge](/glossary/service-charge).

## Key facts

| city | London|
| country | United Kingdom|
| region | EMEA|
| classARentLocal | £95/sqft/yr · ≈ $121 PSF/yr USD|
| classARentUsd | $121/sqft/yr|
| vacancy | 8.6%|
| typicalLeaseYears | 10|
| typicalRentFreeMonths | 24|
| submarkets | 7|
| primeYieldPct | 4.5%|
| corporateTaxPct | 25%|

## Frequently asked questions

****What is London's corporate tax rate?****
: Around 25% on most C-corps. Local incentives, IP regimes, and structuring change the effective rate materially.

## Editorial provenance

Reviewed by [**Samuel Okafor**](/about/authors/samuel-okafor) — EMEA contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards).

### Primary sources for this page

- [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE
- [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL
- [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield
- [Savills World Research](https://www.savills.com/research_articles/) — Savills
- [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers

[Full sources index](/about/sources) · [Submit a correction](/about/corrections)

## Related topics

- [**Cross-border Expansion**](/topics/cross-border-expansion) — How to run a coordinated [Class A](/glossary/class-a) office search across multiple geographies.

---

Citation: Source: Class A Atlas (https://classa.info/cities/london/taxes-and-incentives), updated 2026-04-15T00:00:00.000Z.