Glossary · UK
What is Corporation Tax?
UK tax on company profits — 19% small profits rate, 25% main rate for 2025/26.
Full Definition
Corporation Tax is paid by UK limited companies and some other corporate entities on their profits (income minus allowable expenses). For 2025/26: 19% small profits rate on profits up to £50,000; 25% main rate on profits above £250,000; marginal relief applies between £50,000 and £250,000 (effectively a sliding scale from 19% to 25%). The company is responsible for filing a CT600 return and paying tax within 9 months and 1 day after the company's accounting period ends. Distributing profits as dividends triggers personal dividend tax for shareholders (separate from Corporation Tax).
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.