What is the Corporation Tax rate for 2026/27?
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In short: The main rate is 25% on profits above £250,000. Small profits below £50,000 are taxed at 19%. Between £50,000 and £250,000, marginal relief gradually increases the effective rate from 19% towards 25%.
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For accounting periods starting on or after 1 April 2023, UK Corporation Tax has a small-profits rate of 19% on annual profits up to £50,000 and a main rate of 25% on profits above £250,000. Between those thresholds, marginal relief produces a tapered effective rate — so a company with £100,000 profit pays less than 25% on the total, but more than 19%.
The £50,000 and £250,000 limits are proportionally reduced if you have associated companies — broadly, businesses under common control. A company with three associated companies divides each threshold by four, shrinking the 19% band and pushing more profit into higher effective rates.
Corporation Tax is paid on trading profits, most investment income and chargeable gains. Allowable expenses, capital allowances on equipment, and losses brought forward reduce the bill. Companies must file a CT600 return and pay within nine months and one day of the accounting period end, with digital filing through HMRC's Corporation Tax service.
Primary source: gov.uk/guidance/corporation-tax-rates
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