UK Corporation Tax Rates for 2026-27
| Rate / threshold | Financial year 2026 | Financial year 2025 | Financial year 2024 | Financial year 2023 |
|---|---|---|---|---|
| Small profits rate | 19% | 19% | 19% | 19% |
| Main rate | 25% | 25% | 25% | 25% |
| Marginal Relief lower limit | £50,000 | £50,000 | £50,000 | £50,000 |
| Marginal Relief upper limit | £250,000 | £250,000 | £250,000 | £250,000 |
| Standard fraction | 3/200 | 3/200 | 3/200 | 3/200 |
| Special rate for unit trusts and open-ended investment companies | 20% | 20% | 20% | 20% |
Corporation Tax rates are applied by reference to the financial year beginning on 1 April. If a company's accounting period straddles a change in Corporation Tax rates, profits may need to be apportioned between the relevant financial years.
Marginal Relief Between £50,000 and £250,000
From 1 April 2023, the UK no longer has one single Corporation Tax rate for all non-ring-fence profits. A company with profits of £50,000 or less may qualify for the 19% small profits rate, while a company with profits above £250,000 is generally charged at the 25% main rate. Companies between those limits may obtain Marginal Relief.
The standard Marginal Relief fraction for financial year 2026 is 3/200. The relief produces a gradual increase in the Corporation Tax burden between the small profits rate and the main rate rather than an immediate jump from 19% to 25%.
Associated Companies and Short Accounting Periods
The £50,000 and £250,000 limits are not always available in full. HMRC reduces the limits proportionately for short accounting periods and according to the total number of associated companies. For example, if a company has three associated companies, the limits are divided by four because the subject company is included in the total number of associated companies for this purpose.
Historical UK Corporation Tax Rates: 2011 to 2015
The original article focused on financial years 2011 to 2014. Those figures remain useful for historical computations, amended returns, tax research and older accounting periods, so they are retained below using HMRC's historical rate tables.
| Financial year beginning 1 April | Main rate | Small profits rate | Lower limit | Upper limit | Standard fraction |
|---|---|---|---|---|---|
| 2011 | 26% | 20% | £300,000 | £1,500,000 | 3/200 |
| 2012 | 24% | 20% | £300,000 | £1,500,000 | 1/100 |
| 2013 | 23% | 20% | £300,000 | £1,500,000 | 3/400 |
| 2014 | 21% | 20% | £300,000 | £1,500,000 | 1/400 |
| 2015 | 20% | Unified with main rate | Not applicable for ordinary non-ring-fence profits | Not applicable | Not applicable |
From 1 April 2015, the ordinary small profits rate was merged into a single Corporation Tax rate of 20% for non-ring-fence profits. That unified rate later became 19% from 1 April 2017. The separate 19% small profits rate and 25% main rate were reintroduced from 1 April 2023.
North Sea Oil and Gas Ring Fence Profits
Different Corporation Tax rates apply to profits from oil extraction activities and oil rights in the UK and UK Continental Shelf. For financial year 2026, the ring fence main rate is 30%, the small profits rate is 19%, the ring fence Marginal Relief fraction is 11/400, and the lower and upper limits are £50,000 and £250,000 respectively.
The separate Supplementary Charge on ring fence profits is 10%. Businesses in this sector should use the specific oil and gas rules rather than the ordinary Corporation Tax table alone.
Corporation Tax Payment and Company Tax Return Deadlines
For a typical private limited company, Corporation Tax is normally due 9 months and 1 day after the end of the Corporation Tax accounting period. The Company Tax Return is generally due 12 months after the end of the accounting period. Different payment rules can apply to large and very large companies, including quarterly instalment payments.
Official UK Government and HMRC References
GOV.UK - Corporation Tax rates and allowances
GOV.UK - Corporation Tax rates, expenses and reliefs
HMRC Company Taxation Manual - current small profits rates, limits and fractions
HMRC Company Taxation Manual - historical small profits rates and limits
HMRC Company Taxation Manual - historical full Corporation Tax rates
GOV.UK - company accounts, Corporation Tax payment and return deadlines
Frequently Asked Questions
What is the UK Corporation Tax rate in 2026-27?
The main Corporation Tax rate for financial year 2026 is 25% for profits above £250,000. The small profits rate is 19% for profits of £50,000 or less, subject to the rules on associated companies and accounting periods.
What happens if company profits are between £50,000 and £250,000?
Marginal Relief may reduce the amount of Corporation Tax payable. For financial year 2026 the standard fraction is 3/200.
Were the UK rates in 2011 to 2014 different?
Yes. The main rates were 26% in 2011, 24% in 2012, 23% in 2013 and 21% in 2014. The small profits rate was 20% for all four financial years.
Do associated companies affect the £50,000 and £250,000 thresholds?
Yes. The thresholds are divided by the total number of associated companies, including the company itself for the calculation, and they can also be reduced for short accounting periods.
Is Corporation Tax due when the Company Tax Return is filed?
Not usually. For an ordinary company, Corporation Tax is generally payable 9 months and 1 day after the accounting period ends, whereas the Company Tax Return deadline is generally 12 months after the period ends.
Related Tax Pages
- Income Tax PAN FAQ, Answers & Guidance
- What is the turn over limit for tax audit Who needs to get audited the accounts under section 44AB
- What is authority structure in case of Charitable Trust, Charitable Society, Non Governmental Organizations (NGO), Section 25 Companies and other exempted institutions
- What is the definition of Charitable Purpose Section 2(15) of Income Tax Act- Relief to poor, Education, Medical Relief, other public utility services- Latest amendments
- How to register with Income tax under Section 12A by NGO, Section 25 Company, Charitable Trust and Society Is it necessary to Register
- What is approval u/s 80G(5) Is it necessary for a charitable Institution How to apply for it What is the use of approval u/s 80G(5) for Charitable Trust, Charitable Society, Non Governmental Organizations (NGO), Section 25 Companies and other exempted institutions
- Is exemption of Income to NGO, Section 25 Company, Charitable Trust and Society can forfeiture Provision in Section 13 for forfeiture of Exemption
- What is notification u/s 35(1)(ii)/(iii) How to apply by scientific research association, a university, college or other institutions What is the use
- What are the modes and forms of Investment specified u/s 11(5) in the case of Charitable Trust, NGO, Charitable Society, Section 25 Companies and Charitable entities
- How Charitable Institutions are assessed for Income Tax Accumulation of surplus and utilization of NGO, Section 25 Company, Charitable Trust and Society
- Who are interested persons in the case of Charitable Trust, NGO, Charitable Society, Section 25 Companies and Charitable entities Who are relatives List of interested persons and relatives