Work out the Corporation Tax on your company's profits, including marginal relief for profits between £50,000 and £250,000, and what's left after tax.
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Corporation Tax calculator
Rates from 1 April 2026
Your Corporation Tax
£0
Put in your taxable profits to start.
When it's due
For most companies, Corporation Tax is due 9 months and 1 day after the end of the accounting period. Companies with profits over £1,500,000 a year usually pay in instalments.
A rough guide, not tax advice
This uses the rates for the financial year 1 April 2026 to 31 March 2027, checked on GOV.UK on 28 October 2026, after the Budget on 28 October 2026, which didn't announce a change to them. Your accountant works out the final figure on your company tax return.
Corporation Tax rates and marginal relief from 1 April 2026
| Profits for the financial year 1 April 2026 to 31 March 2027 | Rate |
|---|---|
| £50,000 or less (small profits rate) | 19% |
| Between £50,000 and £250,000 (main rate less marginal relief) | 25% less relief |
| Over £250,000 (main rate) | 25% |
Between the two limits, you work out the tax at 25% and take off marginal relief. The relief is 3/200 of the gap between your profits and £250,000. On profits of £100,000, that's £25,000 less £2,250 of relief, so £22,750 of tax.
The relief shrinks as profits rise, so each extra pound of profit between the limits is taxed at 26.5%, more than the main rate. It's worth knowing when your profits fall between the limits and you're weighing up a cost or a pension contribution.
Both limits are shared between associated companies, so with one other company under the same control they're halved. They're also cut in proportion for an accounting period shorter than 12 months. If your company received dividends from companies outside its group, those count towards the limits even though they aren't taxed.
Taxable profits aren't the profit in your accounts
Corporation Tax is charged on taxable profits, which usually differ from the profit before tax in your accounts. Depreciation is added back, and capital allowances on equipment and vans are taken off instead. Some costs, such as entertaining clients, can't be deducted at all. Losses from earlier years can reduce taxable profits. Your accountant works all of this out on the company tax return, so use their figure if you have it.
What it leaves out
- Periods that span two financial years with different rates. The rates are the same for the years from 1 April 2025 and 1 April 2026, so a period across 1 April 2026 isn't affected.
- Close investment-holding companies, which pay the main rate whatever their profits.
- Research and development relief and other reliefs your accountant may claim.
- Tax on taking money out. Salary and dividends you pay yourself are taxed separately, on you.
Rates checked on GOV.UK on 28 October 2026. The Budget on 28 October 2026 didn't announce a change to Corporation Tax rates, and rates can change at any Budget.
Sources
- GOV.UK: Corporation Tax rates and allowances
- GOV.UK: Corporation Tax rates
- GOV.UK: Claim Marginal Relief for Corporation Tax
- HMRC Company Taxation Manual CTM03925: marginal relief
- HMRC Company Taxation Manual CTM03905: augmented profits
- GOV.UK: Pay your Corporation Tax bill
Profit, tax and value
Corporation Tax is a cost of the company. When a buyer values a business, they start from profit before tax and adjust it, which our adjusted profit calculator works through.
Adjusted profit calculator
The profit a buyer would use to value your business, line by line.
What your business might be worth
A rough range from your profit and the things that move the price.
