Answers · UK 2025/26
What is the UK Corporation Tax rate for 2025?
UK Corporation Tax for 2025/26 is 19% on profits up to £50,000 (small profits rate) and 25% on profits above £250,000. Profits between £50,000 and £250,000 pay marginal relief, giving an effective rate that smoothly rises from 19% to 25%.
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For the financial year 2025 (1 April 2025 to 31 March 2026), UK Corporation Tax is tiered. The small profits rate is 19% on taxable profits up to £50,000. The main rate is 25% on profits above £250,000. Profits between £50,000 and £250,000 pay the main rate but receive marginal relief, giving an effective rate that smoothly rises from 19% to 25%. Associated companies share the £50,000 and £250,000 thresholds — if you have two associated companies, each threshold halves. Corporation Tax is due 9 months and 1 day after the accounting period end. The Annual Investment Allowance (AIA) gives 100% relief on qualifying plant and machinery up to £1,000,000. Research & Development tax credits offer up to 27% effective cash relief for SME-loss-making companies and 16.2% RDEC for larger companies. Patent Box reduces the effective rate to 10% on profits from qualifying IP. Diverted Profits Tax (25%) targets profit-shifting.
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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.