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UK Corporation Tax Calculator (19% & 25% Rates) 2026/27

Calculate UK Corporation Tax for 2026/27. Work out small profits rate (19%), main rate (25%), and exact marginal relief between £50,000 and £250,000.

✅ Official 2026/27 Rates 🎁 100% Free Tool

Calculate Company Corporation Tax

Corporation Tax Due
£17,050
Effective Tax Rate
21.31%
Marginal Relief Saved
£2,950
Profit Retained After Tax
£62,950

How Does UK Corporation Tax Work in 2026/27?

UK Corporation Tax is charged on taxable trading profits, capital gains, and investment income earned by UK limited companies. For the 2026/27 financial year, the statutory system operates two headline tax rates connected by a sliding scale of Marginal Relief.

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Note on Associated Companies: The standard £50,000 and £250,000 thresholds apply only to standalone companies. If you control multiple active companies, use the interactive Corporation Tax Calculator above to adjust for associated entities and calculate exact tax liabilities.

What are the Official UK Corporation Tax Bands and Rates for 2026/27?

Companies with profits below £50,000 pay the 19% Small Profits Rate, while profits exceeding £250,000 incur the 25% Main Rate. Profits between £50,000 and £250,000 benefit from statutory Marginal Relief.

Taxable Profit Threshold Effective Rate Range Statutory Classification
Up to £50,00019%Small Profits Rate
£50,001 to £250,00019% – 25%Marginal Relief (Standard Fraction: 3/200)
Over £250,00025%Main Rate

How is Marginal Relief Calculated on Profits Between £50,000 and £250,000?

Marginal Relief bridges the tax gap between 19% and 25%, ensuring businesses do not face an abrupt tax cliff edge. Tax is computed at the 25% main rate and reduced by applying the statutory 3/200 relief fraction.

The statutory HMRC Marginal Relief formula is:

Marginal Relief = (Upper Limit − Taxable Profit) × (3 / 200)
Corporation Tax Due = (Taxable Profit × 25%) − Marginal Relief

Step-by-Step Corporation Tax Calculations (Worked Examples)

The worked mathematical examples below demonstrate exact tax calculations across small, mid-tier marginal relief, and high-profit scenarios.

£40,000 Profit (Small Business)

Taxable Profit£40,000
Applicable Rate19% (Small Profits)
Marginal Relief£0.00
Corporation Tax Due£7,600.00
Retained Profit£32,400.00

£100,000 Profit (Marginal Relief Math)

Base Tax (25%)£25,000.00
Upper Gap (£250k - £100k)£150,000
Relief (£150k × 3/200)−£2,250.00
Corporation Tax Due£22,750.00
Effective Tax Rate22.75%

£300,000 Profit (Main Rate)

Taxable Profit£300,000
Applicable Rate25% (Main Rate)
Marginal Relief£0.00
Corporation Tax Due£75,000.00
Retained Profit£225,000.00

Frequently Asked Questions

What is the UK Corporation Tax rate for 2026/27?

The UK Corporation Tax main rate is 25% for profits over £250,000, and the small profits rate is 19% for profits up to £50,000. Marginal relief applies between £50,000 and £250,000.

How is Corporation Tax Marginal Relief calculated?

Marginal relief reduces the 25% main rate using the formula: (£250,000 − Taxable Profit) × (3/200). The resulting relief amount is deducted from the 25% tax calculation.

What is the Marginal Relief fraction for 2026/27?

The statutory standard Marginal Relief fraction is 3/200 (or 0.015). This provides a gradual taper from 19% to 25% as company profits increase.

How do associated companies affect Corporation Tax thresholds?

The £50,000 lower and £250,000 upper thresholds are divided equally by the total number of associated companies plus one, accelerating the point where higher tax rates apply.