What is the corporation tax rate in the UK?

For the tax year starting 1 April 2026, 19% applies to all of the profit where profit is GBP 50,000 or below, and 25% applies to all of it where profit is GBP 250,000 or above. Between the two limits, 25% applies to all of the profit and marginal relief is deducted.

How is marginal relief calculated?

Relief = 3/200 × (250,000 − profit). This is the formula in HMRC's Company Taxation Manual (CTM03925) in the case where the company has no exempt distributions. Each additional pound earned between the two limits is taxed at 26.5%.

Do associated companies change the limits?

Yes. If your company controls another company, or if two companies are controlled by the same persons, that company is treated as an associated company and both limits are divided by the number of companies; for a company with three associated companies, the limits are divided by four. According to HMRC, an associated company does not have to be tax resident in the UK. The calculator applies the limits for a single company.

Where do I pay the tax?

Company profit is subject to UK corporation tax at 19% to 25%. How profit distributed as dividends is taxed depends on the rules of your country of residence, so please consult your tax adviser there. We do not give personal tax opinions.

UK corporation tax calculator.

Enter your taxable profit; the tax, the marginal relief and the effective rate are calculated using the rates for the tax year starting 1 April 2026.

Illustrative display

AnnualMonthly

Annual taxable profit (GBP)

0GBP 500,000

Preset amounts

The amount in the box is an example. Taxable profit, not turnover. The thousands separator is a comma and the decimal separator a point.

Illustrative breakdownOn GBP 100,000

Profit falls between the two limits: 25% applies to all of it and marginal relief of GBP 2,250 is deducted. Each additional pound earned in this range is taxed at 26.5%.

Main rate100,000 × 25%: 25,000GBP
Marginal relief3/200 × (250,000 − 100,000): −2,250GBP
Corporation tax payable25,000 − 2,250 GBP, rounded to the whole pound: 22,750GBP

Rule applied · the tax year starting 1 April 2026

Where profit is GBP 50,000 or below, 19% applies to all of it; where it is GBP 250,000 or above, 25% applies to all of it. In between, 25% applies to all of it and marginal relief of 3/200 × (250,000 − profit) is deducted.

GOV.UK · Rates and allowances: Corporation Tax

The rates and limits have not yet been approved by a certified accountant.

This result is an estimate, not a quotation. We set out the framework that will apply to you line by line in the written quotation.

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Tool detailsHow the tool works, what falls outside its scope, and how the information you enter is handled.

Converting a monthly amount to an annual amount

Multiplied by 12; the twelve months are treated as equal. Tax is calculated on the taxable profit for the whole year. When monthly is selected, the amount you enter is multiplied by 12 and the product is shown on the first line of the breakdown. If your monthly amounts differ from one another, entering the annual total gives a more accurate result.

Short accounting periods and exempt distributions

The tool assumes a twelve-month period and no exempt distributions. If the accounting period is shorter than twelve months, both limits are reduced in the same proportion. Certain exempt distributions received by the company are also added to the amount compared with the limits. Either factor may change the result; the tool does not take them into account.

Outside the scope of the tool

This is neither a tax return nor a tax opinion. Associated companies, short accounting periods and group rules are not included in this calculation; these factors may change the rate and the relief.

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Frequently Asked Questions.

The rates are based on the GOV.UK table "Rates and allowances: Corporation Tax". They are not a personal tax opinion.

For the tax year starting 1 April 2026, 19% applies to all of the profit where profit is GBP 50,000 or below, and 25% applies to all of it where profit is GBP 250,000 or above. Between the two limits, 25% applies to all of the profit and marginal relief is deducted.
Relief = 3/200 × (250,000 − profit). This is the formula in HMRC's Company Taxation Manual (CTM03925) in the case where the company has no exempt distributions. Each additional pound earned between the two limits is taxed at 26.5%.
Yes. If your company controls another company, or if two companies are controlled by the same persons, that company is treated as an associated company and both limits are divided by the number of companies; for a company with three associated companies, the limits are divided by four. According to HMRC, an associated company does not have to be tax resident in the UK. The calculator applies the limits for a single company.
Company profit is subject to UK corporation tax at 19% to 25%. How profit distributed as dividends is taxed depends on the rules of your country of residence, so please consult your tax adviser there. We do not give personal tax opinions.

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