Skip to main content
GovMath.

Business & Self-Employed · 2025/26 rates

Corporation Tax Calculator

From April 2023, UK Corporation Tax has two main rates — 19% for profits up to £50,000 and 25% above £250,000 — with a marginal-relief band in between that effectively taxes those middle pounds at 26.5%.

Annual profit

£

After deductible expenses, salary and pension contributions.

Corporation Tax

£17,450

Effective 21.8% on profit

How the rate is applied

  • Pre-tax profit
    £80,000
  • 19% + marginal 26.5%
    −£17,450
  • Profit after CT
    £62,550

Profits up to £50,000 pay 19%. £50,000–£250,000 sits in the marginal-relief band (effective 26.5%). £250,000+ pays the full 25%.

How we calculated your result

The marginal-relief band works by giving small-profits relief that tapers away between £50k and £250k. The net effect: every £1 of profit between those limits is taxed at 26.5% — the “marginal effective rate”.

So a £100k-profit company doesn’t pay 25% × £100k. It pays 19% × £50k + 26.5% × £50k = £22,750.

Official UK rules in simple English

  • Small profits rate: 19% on profits ≤ £50,000.
  • Main rate: 25% on profits ≥ £250,000 (applied to the whole profit, not just the excess).
  • Marginal relief: between £50k and £250k, effective rate 26.5% on the excess above £50k.
  • Limits divided by number of associated companies: two companies share £50k/£250k thresholds.
  • Payable 9 months and 1 day after year-end; large companies (£1.5m+) pay quarterly instalments.

Common pitfalls to watch out for

  • ⚠ Associated companies divide your bands

    Two trading companies under common control? Each gets only £25k small-profits / £125k upper. Easy way to land in marginal relief unexpectedly.

  • ⚠ Salary, pension and dividends interact

    Director’s salary is deductible against CT — pension contributions even more so. Strategic extraction can drop you below £50k.

  • ⚠ Don't confuse with Income Tax bands

    CT is on company profit, not your personal pay. Dividends are then taxed personally on top.

Frequently asked questions

Can I time profits to stay in the small-profits band?
Yes — pension contributions, capital allowances, or accruing genuine expenses can keep you below £50k. Don’t backdate.
What about ring-fence (oil & gas) rates?
30% / 19% with a separate supplementary charge. Out of scope here.

Excludes associated companies, ring-fence profits and patent box. Talk to an accountant for real numbers.

Related calculators

More tools in Business & Self-Employed.