UK Corporation Tax Calculator 2026/27

Calculate your limited company's corporation tax bill for 2026/27. Includes the small profits rate, main rate and marginal relief for profits between £50,000 and £250,000.

Taxable Profits
£0.00
Rate Band Applied
·
Corporation Tax Bill
£0.00
Effective Rate
0%
Profits After Tax
£0.00
Monthly After-Tax Profit
£0.00
Marginal Relief Applied
£0.00
Adjusted Lower Limit
£0
Enter your company's profits to calculate your corporation tax bill.
After-Tax Profit vs Corporation Tax
How Corporation Tax Marginal Relief Works

The corporation tax system has two rates: the small profits rate of 19% for companies with profits up to £50,000, and the main rate of 25% for profits of £250,000 or more. Companies with profits between these limits receive marginal relief, which tapers the effective rate from 19% to 25%.

Marginal relief formula:
Tax = (Profits × 25%) − Marginal Relief
Marginal Relief = (3/200) × (Upper Limit − Profits) × (Profits ÷ Profits)
Since Profits ÷ Profits = 1 (for a standalone company with no augmented profits distinction), this simplifies to:
Marginal Relief = (3/200) × (Upper Limit − Profits)

Associated companies divide the thresholds. If you have 1 associated company, the lower limit becomes £25,000 and upper limit becomes £125,000. If you have 2 associated companies, limits become £16,667 and £83,333 respectively.

Short accounting periods pro-rate the thresholds. A 6-month period would have limits of £25,000 and £125,000 respectively (before any associated company division).

Corporation Tax · Estimated Liability 2026/27

Small profits rate 19% (up to £50,000) · Main rate 25% (above £250,000) · Marginal relief applies between £50,001–£250,000.

Annual Profit Corporation Tax Effective Rate Net Profit After Tax
£20,000£3,80019.0%£16,200
£30,000£5,70019.0%£24,300
£50,000£9,50019.0%£40,500
£75,000£16,68822.3%£58,312
£100,000£22,75022.8%£77,250
£150,000£34,93823.3%£115,062
£250,000£62,50025.0%£187,500
£500,000£125,00025.0%£375,000

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Corporation Tax Calculator FAQs

What is the corporation tax rate UK 2026?
UK corporation tax in 2026/27: 19% for profits up to £50,000 (small profits rate) · 25% for profits above £250,000 (main rate). Profits between £50,001 and £250,000 use marginal relief, giving an effective rate that tapers from 19% to 25% across that range.
How much corporation tax on £100,000 profit?
On £100,000 profit, corporation tax is approximately £22,750 after marginal relief (effective rate ~22.75%). On £50,000 profit the bill is £9,500 (flat 19%). Above £250,000, the rate is a flat 25% with no further relief.
How does marginal relief work?
Marginal relief tapers the effective rate between the small profits rate (19%) and the main rate (25%) for companies with profits between £50,000 and £250,000. The formula is: tax = (profits × 25%) − (3/200) × (£250,000 − profits). This means the effective rate rises gradually rather than jumping from 19% to 25% at a single threshold.
When is corporation tax due?
For most small companies, corporation tax is due 9 months and 1 day after the end of the accounting period. A Company Tax Return (CT600) must be filed within 12 months of the period end. Large companies with profits above £1.5 million pay in quarterly instalments during the accounting period.
Is a limited company more tax-efficient than being a sole trader?
At lower profit levels (under ~£30,000) a sole trader structure is often simpler with similar tax. Above around £30,000–£50,000, a limited company paying salary plus dividends can be more efficient · corporation tax rates are lower than income tax, and dividends avoid National Insurance. However, limited companies have higher admin costs and compliance requirements.

For informational purposes only · Not financial advice · Tax rates shown are for 2026/27