Answers · UK 2025/26
How much corporation tax do I pay on £200,000 of company profit in 2026/27?
On £200,000 of company profit for 2026/27 you pay corporation tax at the 25% main rate reduced by marginal relief, because the profit sits between £50,000 and £250,000. The tax works out at roughly £45,500, an effective rate of about 22.75%, assuming one company and a full 12-month period.
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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. Profits between £50,000 and £250,000 are taxed at 25% but reduced by marginal relief, which gives a smooth, gradually rising effective rate across that band. For £200,000 of profit you first calculate the tax at 25%, which is £50,000, then deduct marginal relief. Marginal relief is the standard fraction of 3/200 multiplied by the difference between the £250,000 upper limit and your profit: 3/200 times (£250,000 minus £200,000) equals 3/200 times £50,000, which is £750. Subtracting £750 from £50,000 gives corporation tax of about £49,250 on £200,000 of profit. The effective rate is therefore around 24.6%. The £50,000 and £250,000 limits are reduced if the company has associated companies or an accounting period shorter than 12 months, so a group of companies shares the thresholds. Corporation tax is due nine months and one day after the end of the accounting period for smaller companies, with larger companies paying in quarterly instalments. You can reduce taxable profit through allowable expenses, pension contributions for directors, and capital allowances such as the Annual Investment Allowance on qualifying equipment. Use the corporation tax calculator to enter your exact profit and associated companies for the precise 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.