In the Tax Foundation’s latest ITCI report, the UK ranked 26 out of 38, placing lower than the US and Germany. Estonia ranked number one for having the best tax code in the OECD, its ninth year in a row.

The report ranked countries on their tax system, and focused on two important aspects of tax policy, which were competitiveness and neutrality.

To measure a country’s tax system, the ITCI looked at more than 40 tax policy variables, including a company’s corporate taxes, individual income taxes, consumption taxes and profits earned overseas.

The UK, which ranked one place higher than last year (27), scored largely on its corporation tax rate, which currently stands at 19% - below the OECD average of 23.6%, although this is set to rise to 25% from 1 April 2023.