Every UK limited company pays Corporation Tax on its profits. Here's how the rate structure works.
| Profit level | Rate |
|---|---|
| Up to £50,000 | 19% (Small Profits Rate) |
| £50,000 – £250,000 | Marginal relief — effective rate rises gradually toward 25% |
| Above £250,000 | 25% (Main Rate) |
These thresholds are divided among "associated companies" — if you own more than one company, the £50,000 and £250,000 limits are split between them.
Calculate your exact Corporation Tax, including marginal relief.
Use the Corporation Tax Calculator →Associated company rules and specific reliefs aren't covered here. Consult an accountant for company-specific tax planning.