3 articles tagged with Marginal Relief.
Corporation tax marginal relief explained for 2026/27 -- small profits rate 19%, main rate 25%, the 3/200 fraction, and associated company rules.
Owning more than one company can quietly push you into a higher corporation tax rate. Associated companies divide the GBP 50,000 and GBP 250,000 limits, so understanding the rules can save thousands in 2026/27.
Profits between GBP 50,000 and GBP 250,000 are taxed at an effective marginal rate of 26.5% in 2026/27 thanks to marginal relief and the 3/200 fraction. Here is how the calculation works with a worked example.