Corporation Tax Rates 2026/27
The main rate, small profits rate, marginal relief band and 3/200 fraction for 2026/27, plus every Corporation Tax rate by financial year back to FY2017.
Corporation Tax rates for 2026/27
| Band | Augmented profits | Rate |
|---|---|---|
| Small profits rate | Up to £50,000 | 19% |
| Marginal relief band | £50,000 – £250,000 | Tapered — effective 26.5% marginal rate |
| Main rate | Over £250,000 | 25% |
The band is decided on augmented profits (taxable profits plus most exempt dividends received) and the rate is charged on taxable profits. Marginal relief is calculated as 3/200 × (£250,000 − augmented profits) × taxable profits ÷ augmented profits, subtracted from tax charged at the 25% main rate on the taxable profits; with no exempt dividends received it is 3/200 × (£250,000 − profits). That produces an effective marginal rate of 26.5% on each additional pound of profit inside the band — higher than the 25% main rate, because each extra pound also claws back some of the benefit of the lower rate on the first £50,000. For the full calculation on your own figures, use the Corporation Tax Calculator.
A company that is not UK resident in the accounting period, or is a close investment-holding company, gets neither the small profits rate nor marginal relief: it pays the 25% main rate on all its taxable profits, whatever their size.
Corporation Tax rates by financial year
Corporation Tax financial years run 1 April to 31 March, one day out of step with the 6 April – 5 April income tax year. From FY2015 to FY2022 there was a single flat rate for every company; the small profits rate, main rate and marginal relief returned on 1 April 2023.
| Financial year | Small profits rate | Main rate | Marginal relief band |
|---|---|---|---|
| FY2026 (Apr 2026 – Mar 2027) | 19% (up to £50,000) | 25% (over £250,000) | £50,000 – £250,000, 3/200 fraction |
| FY2025 (Apr 2025 – Mar 2026) | 19% (up to £50,000) | 25% (over £250,000) | £50,000 – £250,000, 3/200 fraction |
| FY2024 (Apr 2024 – Mar 2025) | 19% (up to £50,000) | 25% (over £250,000) | £50,000 – £250,000, 3/200 fraction |
| FY2023 (Apr 2023 – Mar 2024) | 19% (up to £50,000) | 25% (over £250,000) | £50,000 – £250,000, 3/200 fraction |
| FY2022 (Apr 2022 – Mar 2023) | Single flat rate: 19% | No split / no marginal relief | |
| FY2021 (Apr 2021 – Mar 2022) | Single flat rate: 19% | No split / no marginal relief | |
| FY2020 (Apr 2020 – Mar 2021) | Single flat rate: 19% | No split / no marginal relief | |
| FY2019 (Apr 2019 – Mar 2020) | Single flat rate: 19% | No split / no marginal relief | |
| FY2018 (Apr 2018 – Mar 2019) | Single flat rate: 19% | No split / no marginal relief | |
| FY2017 (Apr 2017 – Mar 2018) | Single flat rate: 19% | No split / no marginal relief | |
Verified against HMRC's Company Taxation Manual full rate table (CTM01750), gov.uk's Corporation Tax rates and allowances publication, and gov.uk's Corporation Tax marginal relief guidance. See Sources below.
Associated companies and short accounting periods
Associated companies
The £50,000 and £250,000 limits are divided by the total number of companies under common control — your company plus each associated company. One associated company halves both limits; two associated companies divide them by three. Dormant companies are generally excluded from the count.
Short accounting periods
If your accounting period is shorter than 12 months, both limits are pro-rated by the number of days in the period before any associated-company division is applied. A 6-month period halves both limits again, on top of any associated-company reduction.
Both adjustments compound: a company with one associated company and a 6-month accounting period sees its limits divided by 2 (associated companies) and then by 2 again (period length) — a quarter of the standard £50,000/£250,000 figures. Work through your own numbers, including both adjustments, on the Corporation Tax Calculator.
Is the rate changing again?
No change confirmed for 2026/27
The rates and limits above are confirmed by HMRC as of this page's last update. The Autumn Budget on 28 October 2026 kept the main rate and the small profits rate unchanged for the financial years 2027 and 2028. Nothing beyond the current figures is in force until the legislation is passed.
Frequently asked questions
What is the Corporation Tax rate for 2026/27?
What is the marginal relief fraction?
Why was Corporation Tax 19% for so many years?
How do associated companies affect the limits?
How do short accounting periods affect the limits?
Did the Autumn Budget on 28 October 2026 change the rate?
Sources
Reflects Corporation Tax rates in force for 2026/27, verified against gov.uk and HMRC's Company Taxation Manual.
Related Calculators
Corporation Tax Calculator
19% small profits / 25% main rate with marginal relief through the £50k–£250k profits band — 3/200 fraction applied.
File and Pay Corporation Tax
Register with HMRC, prepare and submit a CT600 with commercial software, pay electronically, and use the business tax account.
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14% main pool and 6% special rate writing down allowances, the £1,000,000 Annual Investment Allowance, the 40% first-year allowance, and what you can claim on a car.
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S455 tax on an overdrawn director's loan (dividend upper rate), plus beneficial-loan BIK and employer Class 1A NIC.
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Corporation Tax Rates 2026/27: Marginal Relief and Associated Companies
UK corporation tax for financial year 2026: the 19% small profits rate, 25% main rate, the 3/200 marginal relief fraction, associated-company apportionment, and payment deadlines.
Corporation Tax Rates and Small Profits Rate 2025/26
How UK corporation tax rates work in 2025/26, including the 19% small profits rate, 25% main rate, and the marginal relief band in between.