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UK Corporation Tax Calculator

Updated for tax year 2026/27 Business & Self-Employed HMRC corporation tax rates

Limited companies pay corporation tax on their taxable profits. Since 2023 the rate depends on profit: 19% up to £50,000, 25% above £250,000, with marginal relief between the two.

Enter your company’s taxable profit for the accounting period to see the tax due.

Your details

Profit before corporation tax for the accounting period

Results

Corporation tax due
£22,750.00
Marginal relief band
Profit after corporation tax
£77,250.00
Taxable profit
£100,000.00
Effective tax rate
22.8%
Marginal relief
£2,250.00

Corporation tax calculation

Taxable profit at 25%£25,000.00
Marginal relief− £2,250.00
Corporation tax due£22,750.00

How the calculation works

We believe numbers should be transparent. Here is the formula behind this calculator.

Profit ≤ £50,000: 19% · Profit ≥ £250,000: 25% · In between: 25% − ((£250,000 − profit) × 1.5%)

Worked example

Worked example: £100,000 profit in 2026/27

Company profit: £100,000 for the year.
Profit is above the £50,000 small profits limit, so the main rate of 25% applies — but marginal relief reduces the bill.
Marginal relief = (£250,000 − £100,000) × 1.5% = £2,250.
Corporation tax = £100,000 × 25% − £2,250 = £22,750.

Important assumptions

  • Assumes your company has no associated companies. The £50,000 and £250,000 limits are divided between associated companies.
  • Assumes no distributions received from other companies (which would change the marginal relief formula).
  • Rates reflect the 2026/27 corporation tax regime: 19%, 25% with marginal relief.

Frequently asked questions

What are the corporation tax rates for 2026/27?

19% on profits up to £50,000, 25% on profits above £250,000, and marginal relief between the two. The marginal rate in the relief band is effectively 26.5%.

What happens if I have associated companies?

The £50,000 and £250,000 profit limits are divided equally between all associated companies. For example, two associated companies each get a £25,000 small profits limit.

Is corporation tax the same as dividend tax?

No. Corporation tax is paid by the company on its profits. Dividend tax is paid by you personally on dividends the company distributes. See our dividend tax calculator for the personal side.

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Related guides

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These calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.