Answers · UK 2025/26
How much is corporation tax on £100,000 profit?
Corporation Tax on £100,000 company profit is about £22,750 for 2026/27. Profits in this band fall between the £50,000 small-profits rate (19%) and the £250,000 main rate (25%), so marginal relief applies, giving an effective rate of roughly 22.75%.
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Corporation Tax for 2026/27 has a small-profits rate of 19% on profits up to £50,000 and a main rate of 25% on profits of £250,000 or more. Between these limits, marginal relief tapers the rate upward, producing an effective rate between 19% and 25%. Worked example for £100,000 profit: applying the main 25% rate gives £25,000, then marginal relief (using the standard 3/200 fraction on the difference up to £250,000) reduces the bill. The relief is 3/200 × (£250,000 − £100,000) = 3/200 × £150,000 = £2,250. So Corporation Tax = £25,000 − £2,250 = £22,750, an effective rate of about 22.75%. The marginal band between £50,000 and £250,000 carries a high marginal rate of 26.5% on each extra pound, which is worth knowing when planning profit extraction. These thresholds are divided among associated companies, so groups get smaller bands each. Corporation Tax is a UK-wide tax with no Scottish variation. After paying it, extracting profit as dividends incurs dividend tax (8.75% basic, 33.75% higher, 39.35% additional, above the £500 allowance). Use the Corporation Tax calculator to compute your company's bill.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.