Corporation Tax · 2026/27
UK Corporation Tax by Profit Level
Corporation tax on 9 common UK company profit levels, from £10,000 to £2,500,000.
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Frequently Asked Questions
What is the small profits rate and when does it apply?
The small profits rate is 19% on profits up to £50,000.
How do I calculate marginal relief on my company's profit?
Marginal relief applies to profits between £50,000 and £250,000, giving a tapered effective rate between 19% and 25%. The exact rate depends on your profit level within this range.
Does my company qualify for the main rate of tax or the small profits rate?
Your company pays the main rate if its taxable profit is above £250,000. For profits up to £50,000, you pay the small profits rate of 19%. Between £50,000 and £250,000, your effective rate is tapered between 19% and 25% via marginal relief.
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At what point does my company start to pay the main rate of Corporation Tax?
Your company pays the main rate of 25% in full once profits exceed £250,000.
Can you explain how tapering works between the small and main rates?
Between £50,000 and £250,000 of profit, marginal relief tapers the effective Corporation Tax rate upward from 19% to 25%, depending on where profit falls within that band.
How often do I need to make payments towards my Corporation Tax liability?
Corporation Tax is normally paid via Corporation Tax Self Assessment, with a single payment due 9 months and 1 day after the end of your accounting period.
Is there any difference in tax treatment for dividends compared to other forms of income?
Dividends a company pays out to its shareholders are not a deductible expense for Corporation Tax — they come from the company's already-taxed profits. Dividends a UK company receives from other UK companies are usually exempt from Corporation Tax under the dividend exemption rules.
What happens if my company's profits exceed £250,000 in a single year?
The main rate of 25% applies in full to profits above £250,000.
How does the 9 months and 1 day payment deadline work with respect to accounting periods ending on different dates?
Corporation Tax is due 9 months and 1 day after the end of your accounting period, whatever date in the year that period ends.