Corporation Tax Calculator 2026/27

Written and reviewed by Waqas Sagar, Chartered Accountant
ICAEW & ACCA RegulatedAccotax
Last updated: May 2026

Calculate your UK corporation tax liability instantly. See the small profits rate, main rate, and marginal relief calculations. Updated with 2026/27 HMRC rates.

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Company Details
Enter your company's taxable profit to calculate corporation tax

Your company's taxable profits for the accounting period

Corporation Tax Rates 2026/27

Small Profits Rate (up to £50k)19%
Main Rate (over £250k)25%
Marginal Relief (£50k - £250k)19-25%

Corporation Tax Due

£24,100

Effective Rate: 2410.0%

Profit After Tax

£75,900

Tax Calculation Breakdown
Taxable Profit£100,000
Tax Band

Marginal Relief

24.10%
Marginal Relief-£900
Corporation Tax Due£24,100
Profit After Tax£75,900
Rate Summary

Effective Tax Rate

2410.0%

Retention Rate

7590.0%

Calculation Methodology

This calculator uses official HMRC corporation tax rates for 2026/27. The small profits rate (19%) applies to profits up to £50,000. The main rate (25%) applies to profits over £250,000. Marginal relief is calculated for profits between these thresholds. Reviewed by a qualified ICAEW-regulated accountant.

Official Sources

Important: Results are estimates based on standard HMRC rules. Your actual tax may differ based on your specific tax code, benefits, or HMRC adjustments. Always verify with your employer or a qualified accountant.

Frequently Asked Questions

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

For the 2026/27 tax year, UK corporation tax has two main rates. The small profits rate of 19% applies to companies with taxable profits of £50,000 or less. The main rate of 25% applies to companies with profits over £250,000. Companies with profits between these thresholds pay an effective rate between 19% and 25% through marginal relief.

How does marginal relief work for corporation tax?

Marginal relief helps companies with profits between £50,000 and £250,000 transition between the small profits rate (19%) and main rate (25%). The relief reduces the amount of tax payable, resulting in an effective rate between 19% and 25%. This prevents a cliff-edge where a small increase in profits could result in a large tax increase.

When do I need to pay corporation tax?

Corporation tax is due 9 months and 1 day after the end of your accounting period. For example, if your accounting period ends on 31 March, your corporation tax is due by 1 January the following year. Larger companies (profits over £1.5m) must pay in quarterly instalments.

What expenses can I deduct from corporation tax?

You can deduct business expenses that are wholly and exclusively for business purposes. This includes staff costs, office rent, utilities, business travel, marketing, professional fees, and equipment. Some capital expenditure qualifies for capital allowances, including the Annual Investment Allowance of up to £1 million.

How are associated companies treated for corporation tax?

If your company has associated companies (companies controlled by the same persons), the £50,000 and £250,000 profit thresholds are divided by the number of associated companies plus one. For example, if you have one associated company, the small profits limit becomes £25,000 and the main rate limit becomes £125,000.

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