What is the rate of Corporation Tax? How does marginal relief work? Which companies pay the main rate of Corporation Tax? Which companies pay the small profits rate of Corporation Tax? How do I calculate Corporation Tax? 

This is a freeview 'At a glance' guide to Corporation Tax rates, including marginal relief. 

Corporation Tax rates for companies

Rate 

Profit bands

£

Effective

%

2023-24 and

2024-25

2017-18
to 
2022-23
Small profits rate 0 - 50,000 19% 19%
Marginal rate 50,001 - 250,000 26.5% 19%
Main rate >250,000 25% 19%
Fraction   3/200 n/a

Notes

From 1 April 2023:

The marginal relief calculation from 1 April 2023

When adjusted 'Augmented' profits fall between the Lower and Upper limits, Marginal relief is given by reducing the 25% Corporation Tax charge by: 

Fraction x (Upper Limit – Augmented Profits) x Taxable Total Profits/Augmented Profits 

In the legislation it is described as: F x (U-A) x N/A 

What are Augmented profits?

How to calculate Corporation Tax?

Earlier years Corporation Tax rates

Rate 

Profit bands

£ 

Effective

%

2015-16 to
2016-17
2014-15 2013-14 2012-13 2011-12 2010-11
Small 0 - 300,000 20% 20% 20% 20% 20% 21%
Marginal 300,001 - 1,500,000 20% 21.25% 23.75% 25% 27.5% 29.75%
Main >1,500,000  20% 21% 23% 24% 26% 28%
Fraction   n/a 1/400 3/400 1/100 3/200 7/400

Useful guides on this topic 

A new company? Start here
'At a glance' freeview guide is essential reading for anyone thinking about starting up a new company. 

An existing company? Start here...
You have started to run your business through your company. What about Corporation Tax compliance? Does your company have special tax rules that apply?

Sole trader v. limited company: Tax differences & savings (2023/24)
Is it better from both a tax and legal point of view to run your business as a sole trader or as a company? Are there tax advantages in running a business as a company? What legal protections apply?

Associated companies & tests for control
What are the tax effects of associated companies? What is an associated company? How do the control tests work?

Close Investment Holding Companies
When does a close company become a Close Investment Holding Company? What are the consequences?

Close companies: Definitions & control
This guide goes over basic definitions. When is a company deemed 'close' and what constitutes control?

  


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