Answers · UK 2025/26
How much corporation tax do I pay on £50,000 profit in the UK?
Corporation Tax on £50,000 profit is £9,500 at the Small Profits Rate of 19%. The Small Profits Rate applies to profits at or below £50,000. Above £50,000, marginal relief applies, and the full main rate of 25% applies to profits above £250,000.
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UK Corporation Tax on £50,000 profit 2026/27. The Small Profits Rate (SPR) of 19% applies to profits up to £50,000. Tax = £50,000 × 19% = £9,500. If profits were £50,001 or above, marginal relief would begin to apply — the effective rate rises from 19% towards the main rate of 25%. The marginal relief band runs from £50,001 to £250,000. Within this band, the effective rate is: small profits rate 19% + marginal relief fraction 3/200 (1.5%) × (£250,000 − profits). Marginal relief is complex — use HMRC's calculator or accounting software. For profits exactly at £150,000 (midpoint), the effective CT rate is approximately 22%. Full main rate 25% applies on all profits above £250,000. Associated companies: the £50,000 and £250,000 thresholds are divided by the number of associated companies (including subsidiaries). Two associated companies each have a £25,000 SPR threshold. Investment income: non-trading income (interest, property) may also push profits into the higher band. Corporation Tax is payable 9 months and 1 day after the accounting period end for small companies. Large companies pay in quarterly instalments.
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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.