Answers · UK 2025/26
How much Corporation Tax do I pay on £150,000 of company profit?
On £150,000 of taxable company profit in 2026/27, marginal relief applies because profit falls between £50,000 and £250,000. The tax works out at £36,000, an effective rate of 24%.
Full answer
UK 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, with marginal relief smoothing the transition in between. For £150,000 of profit, tax at the 25% main rate is £37,500, then marginal relief of 3/200 x (£250,000 - £150,000) = 3/200 x £100,000 = £1,500 is deducted, giving Corporation Tax of £36,000 on £150,000 of profit -- an effective rate of 24%. Since £150,000 sits at the midpoint of the £50,000-£250,000 marginal relief band, the effective rate is roughly midway between the 19% small profits rate and the 25% main rate, though not exactly halfway because the relief formula is not perfectly linear against the effective rate when expressed as a percentage. Companies with profits in this range should keep the £50,000 and £250,000 limits in mind if they have any associated companies under common control, since these thresholds are divided between associated companies, which can push a group member into a higher effective rate sooner than a standalone company. Corporation tax is due nine months and one day after the end of the accounting period, with quarterly instalments required for larger companies. Use the Corporation Tax calculator for your exact figure including any associated company adjustments.
Try the calculator
More answers
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.