In British English, we would use "head teacher" in primary school and in secondary school. "Headmaster" is now a bit of an old-fashioned term. We don't use the term "principal".
Following on from what Phil said - in the UK, the head of the whole university in called the "Vice-Chancellor", similar to the "president" at American universities. The heads of the various departments are also called "deans" at Oxford, Cambridge and Durham, but at most universities, they are called "heads of faculty".