What is the corporation tax rate in the UK?
Answered 11 March 2026
Here is a comprehensive answer on the UK corporation tax rate:
What the law says
The main rate is set by Parliament for each financial year. Under CTA 2010, s.3, "corporation tax is charged at the rate set by Parliament for the financial year as the main rate".
For the current and recent financial years, Parliament has legislated the following main rates:
- Financial year 2022 (1 April 2022 – 31 March 2023): 19%
- Financial year 2023 (1 April 2023 – 31 March 2024): 25%
- Financial year 2024 (1 April 2024 – 31 March 2025): 25%
- Financial year 2025 (1 April 2025 – 31 March 2026): 25%
Small profits rate (from 1 April 2023): Under CTA 2010, s.18A, corporation tax is charged at the standard small profits rate of 19% on a UK-resident company's taxable total profits (excluding ring fence profits) where the company is not a close investment-holding company and its augmented profits do not exceed the lower limit of £50,000.
Marginal relief applies under CTA 2010, s.18B where augmented profits fall between the lower limit (£50,000) and the upper limit (£250,000). The tax is reduced by: F × (U − A) × (N/A), where F is the standard marginal relief fraction of 3/200ths, U is £250,000, A is augmented profits, and N is taxable total profits.
These limits are divided by the number of associated companies + 1 where a company has associated companies, and are proportionately reduced for accounting periods of less than 12 months.
Ring fence profits (oil & gas): The main ring fence profits rate is 30% and the small ring fence profits rate is 19%.
HMRC guidance / practice
HMRC confirms the current rate structure as follows for financial years 2023, 2024, and 2025:
| Financial Year | Small profits rate | Lower limit | Upper limit | Marginal relief fraction |
|---|---|---|---|---|
| 2023 | 19% | £50,000 | £250,000 | 3/200 |
| 2024 | 19% | £50,000 | £250,000 | 3/200 |
| 2025 | 19% | £50,000 | £250,000 | 3/200 |
HMRC explains that the effective marginal rate between £50,000 and £250,000 is 26.5% — because the difference between the main rate (25%) and the small profits rate (19%) across the £200,000 band produces a marginal rate of 26.5%, with the 3/200 fraction representing the 1.5% difference between the marginal rate and the main rate.
Where a company has associated companies, the limits are divided accordingly. For example, with three associated companies, the lower limit becomes £12,500 and the upper limit £62,500 for a 12-month period.
Summary table
| Profits (standalone company, 12-month period) | Rate |
|---|---|
| Up to £50,000 | 19% (small profits rate) |
| £50,001 – £250,000 | 25% with marginal relief (effective rate 19%–25%) |
| Over £250,000 | 25% (main rate) |
Citation sources
PART 3A Companies with small profits The lower limit and the upper limit The lower limit and the upper limit 18D 1 This section gives the meaning in this Part of “the lower limit” and “ the upper limit ” in relation to an accounting period of a company (“C”). 2 If C has no associated company in the accounting period— a the lower limit is £50,000, and b the upper limit is £250,000. 3 If C has one or more associated companies in the accounting period— a the lower limit is— £ 50,000 ( 1 + N ) b the
PART 1 Income tax, corporation tax and capital gains tax Corporation tax charge and rates Charge and main rate for financial years 2022 and 2023 6 1 Corporation tax is charged for the financial years 2022 and 2023. 2 The main rate of corporation tax— a is 19% for the financial year 2022, and b is 25% for the financial year 2023.
The lower rates of CT, and relevant limits and fractions, applicable are as follows: Financial year (commencing 1 April) Rate Lower limit where no associated company* Upper limit where no associated company* Marginal relief standard fraction 2023 19% £50,000 £250,000 3/200 2024 19% £50,000 £250,000 3/200 2025 19% £50,000 £250,000 3/200 *based on a 12-month accounting period. For a table with the rates, limits and fractions for the small profits relief from Financial year 1989 to Financial year 2
Part 8 Oil activities CHAPTER 3A Rates at which corporation tax is charged on ring fence profits The rates Corporation tax rates on ring fence profits 279A 1 Corporation tax is charged on ring fence profits at the main ring fence profits rate. 2 But subsection (3) provides for tax to be charged at the small ring fence profits rate instead of the main ring fence profits rate in certain circumstances. 3 Corporation tax is charged at the small ring fence profits rate on a company's ring fence profi
Where in any accounting period of twelve months: a company has no associated companies, and its augmented profits for the accounting period exceed the lower limit but do not exceed the upper limit the CT charged at the main rate on its total taxable profits is reduced by an amount of marginal relief calculated using the following formula: (F x (U – A)) x (N ÷ A) Where F = the standard marginal relief fraction (set by Parliament for each financial year) U = the upper limit A = the amount of augme
PART 3A Companies with small profits The standard small profits rate for non-ring fence profits Profits charged at the standard small profits rate 18A 1 Corporation tax is charged at the standard small profits rate on a company's taxable total profits of an accounting period which are not ring fence profits if— a the company is UK resident in the accounting period, b it is not a close investment-holding company in the period, and c its augmented profits of the accounting period do not exceed the
Corporation tax charge and rates etc Charge and main rate for financial year 2025 12 1 Corporation tax is charged for the financial year 2025. 2 The main rate of corporation tax for that year is 25%.
Where in any accounting period a company has one or more associated companies, the upper and lower limits are divided by the total number of associated companies, that is, one plus the number of companies associated with the subject company. Therefore, if the company has three associated companies and its accounting period is for the twelve months to 31 March 2024, the lower and upper limits are Lower limit £50,000 / 4 = £12,500 Upper limit £250,000 / 4 = £62,500 Where the accounting period is l