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Corporation Tax — Marginal Relief

Calculate UK Corporation Tax with marginal relief: 19% up to £50k, 25% from £250k, tapered between.

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Data verified · May 2026

Which Corporation Tax rate applies to my company's profits?

19% (small profits rate) up to £50,000 and 25% (main rate) from £250,000. Between those limits the 25% charge is tapered by marginal relief, so the effective rate sits somewhere between the two.

Source: CTA 2010 ; HMRC marginal relief. · updated 2026

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Everything about Corporation Tax — Marginal Relief

📋Overview+

Calculates Corporation Tax including marginal relief: the small profits rate of 19% applies up to £50,000, the main rate of 25% from £250,000, and between the two limits marginal relief tapers the effective rate using the 3/200 fraction.

📖User guide+

How to use this calculator

  1. 1

    Enter the taxable total profits.

  2. 2

    Read the main tax, marginal relief and Corporation Tax due.

📚Glossary+
Marginal relief
A taper reducing the 25% main-rate charge for profits between £50,000 and £250,000.
ℹ️Sources & updates+
📅

Last data update

May 21, 2026

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Sources and references

CTA 2010 ; HMRC marginal relief.

The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.

FAQ — Corporation Tax — Marginal Relief

Which Corporation Tax rate applies to my company's profits?+

19% (small profits rate) up to £50,000 and 25% (main rate) from £250,000. Between those limits the 25% charge is tapered by marginal relief, so the effective rate sits somewhere between the two.

How does marginal relief actually work?+

The company is first charged at the 25% main rate, then a relief calculated with the 3/200 fraction is deducted for profits between £50,000 and £250,000. The calculator shows the main-rate charge, the relief and the resulting Corporation Tax due.

Why is my effective rate higher than 19% but below 25%?+

That is the taper in action: as profits move from £50,000 towards £250,000, marginal relief shrinks and the effective rate climbs gradually towards 25%. Watch the effective rate output to see where your profits sit on that slope.

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