What is the UK Corporation Tax Rate?
The UK Corporation Tax rate a company pays depends on its level of taxable profit. For the 2026/27 financial year, there are three positions to understand.
Corporation Tax rates for 2026/27
Profits up to £50,000 — the small profits rate of 19% generally applies. Profits between £50,000 and £250,000 — Marginal Relief applies, gradually tapering the rate up from 19% towards 25%. Profits above £250,000 — the main rate of 25% applies to all taxable profits.
Why it isn't quite that simple
Those thresholds look straightforward, but they are not fixed for every company. The £50,000 and £250,000 thresholds are divided by the number of associated companies a business has, and they are also reduced proportionately where a company has a short accounting period. This means a group of companies, or a business that changed its year end, can reach the main rate considerably sooner than the headline figures suggest.
How the rate is applied in practice
Once taxable profit has been calculated, after allowable expenses, capital allowances and any other reliefs, the appropriate rate or Marginal Relief calculation is applied to arrive at the Corporation Tax liability reported on the company's CT600.
Related terms: Corporation Tax, Marginal Relief, Associated Companies, CT600, Capital Allowances.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.