Answers · UK 2025/26
How much Corporation Tax do I pay on £75,000 of company profit?
On £75,000 of taxable company profit in 2026/27, marginal relief applies because profit falls between £50,000 and £250,000. The tax works out at £16,125, an effective rate of 21.5%.
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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 for profits in between. For £75,000 of profit, you first calculate tax at the 25% main rate, which is £18,750, then deduct marginal relief: the standard fraction of 3/200 multiplied by the difference between the £250,000 upper limit and your profit, so 3/200 x (£250,000 - £75,000) = 3/200 x £175,000 = £2,625. Subtracting £2,625 from £18,750 gives Corporation Tax of £16,125 on £75,000 of profit, an effective rate of 21.5%. This is meaningfully lower than a flat 25% would produce, illustrating how marginal relief keeps the effective rate rising gradually as profit increases through the £50,000-£250,000 band rather than jumping straight from 19% to 25%. The £50,000 and £250,000 limits are reduced if the company has associated companies under common control, or if the accounting period is shorter than 12 months. Corporation tax is due nine months and one day after the end of the accounting period for smaller companies. Reducing taxable profit through allowable expenses, director pension contributions and capital allowances such as the Annual Investment Allowance can lower the bill further. Use the Corporation Tax calculator for your exact figure.
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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.