Corporation Tax Calculator FY 2026

Corporation tax

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£22,750

22.75% effective · marginal 26.5% on the next £

2026/27 rates · Last checked May 2026 · Sources visible below

Profit split by tier

How your profit divides across the three corporation-tax tiers.

£0£100,000

Corporation tax £22,750

Rates 2026/27

Small profits

19%

Up to £50,000

Marginal

~26.5%

£50,000 – £250,000

Main

25%

Above £250,000

Breakdown

Profit

£100,000

− Tax at main rate (25%)

− £25,000

+ Marginal relief

+ £2,250

= Corporation tax

£22,750

Where your tax goes

on £22,750 corporation tax

Illustrative allocation only - UK taxes are not ring-fenced. Approximate share of UK central government spending, applied to your corporation tax.

21%

£4,846

Welfare

≈ 69 weeks of welfare per citizen

21%

£4,755

Health

≈ 485 days of NHS care (per citizen)

12%

£2,707

State Pensions

≈ 11 weeks of state pension

11%

£2,457

National Debt Interest

10%

£2,343

Education

≈ 62 school days funded

£1,251

Defence

Categories and shares from HMRC's 2024/25 Annual Tax Summary methodology (PESA 2025 + OBR March 2025). Last reviewed 2026-04-29.

See the full UK budget →

+ £4,413 across public order & safety, transport, business & industry and 6 more

Estimates for illustrative and educational purposes only. Calculations use HMRC published rates and are not regulated financial, tax, or legal advice. Verify against your own tax position before filing or making financial decisions.

UK corporation tax in FY 2026

Corporation tax is 19% on profits up to £50,000 and 25% on profits of £250,000 or more. Between those bands, marginal relief tapers the rate smoothly. Associated companies under common control share the £50k and £250k limits, so adding a second company can pull a profitable trading company into the marginal band sooner than expected.

What is the UK corporation tax rate for 2026/27?

19% small profits rate on profits up to £50,000. 25% main rate on profits of £250,000 or more. Between £50,000 and £250,000, marginal relief applies, giving an effective marginal rate of 26.5% on the slice above £50,000.

How does marginal relief work?

For a single company with no franked investment income, HMRC's marginal relief simplifies to: tax at 25% minus 3/200 of the gap between £250,000 and your profit. The result is a smooth taper, £50,000 profit → 19%, £100,000 → £22,750 (≈22.75%), £250,000 → 25%. Each extra £1 of profit inside the relief band costs an effective 26.5% in tax. (Associated companies divide the £50k and £250k thresholds; a short accounting period prorates them.)

What are 'associated companies'?

Two or more companies under common control. The £50,000 and £250,000 limits are divided between them. Two associated companies each get £25,000/£125,000 limits, three get £16,667/£83,333, and so on. Stops accidental gaming.

Are dividends tax-deductible for the company?

No. Dividends are paid from post-corporation-tax profit. Salary, employer NIC and pension contributions are all corporation-tax deductible, which is part of why the salary vs dividend mix matters.