UK Calculators/UK Corporation Tax & Marginal Relief

UK Corporation Tax & Marginal Relief Calculator (2026/2027)

Calculate your CT600 liability across the 19% Small Profits Rate, 25% Main Rate, and exact Marginal Relief bracket.

£120,000
£50k (19% Rate)£150k (Marginal Relief)£250k+ (25% Rate)
Adjusts lower threshold to £50,000 & upper threshold to £250,000.
Corporation Tax Breakdown
Gross Taxable Profit:£120,000
Full Tax at 25%:£30,000
Marginal Relief Discount (3/200):1,950
Effective Tax Rate:23.38%
Net Corporation Tax Due (CT600)
£28,050
Retained Profit After CT:£91,950
Real-Time Mathematical Audit

Live Step-by-Step Corporation Tax Walkthrough

Line-by-line proof of how HMRC calculates your CT600 liability based on your selected inputs.

Step 1: Profit & Company Limits1 Associated Co
Annual Taxable Profit: £120,000
Small Profits Threshold (19%): £50,000
Main Rate Threshold (25%): £250,000

💡 Limits are divided by 1 associated company structure.

Step 2: Tax Bracket DeterminationMarginal Relief Bracket
Active Rate Mechanism: 25% Minus Marginal Relief
Effective Rate Charged: 23.38%

💡 Profits between £50,000 & £250,000 qualify for Marginal Relief.

Step 3: Marginal Relief Formula3/200 Fraction
Full Main Rate Tax (25%): £30,000
Upper Limit Gap: £130,000
Marginal Relief Discount: 1,950

💡 Formula: (250,000 - 120,000) × 3/200.

Step 4: Final CT600 Tax & Retained EarningsNet Tax Verified
Net CT600 Tax Due: £28,050
Profit Retained in LTD: £91,950

💡 Payment due 9 months and 1 day after company accounting year end.

UK Corporation Tax Rates & Thresholds (2026/2027)

Official HMRC Corporation Tax rates, Marginal Relief fraction, and payment deadlines.

Profit BracketTaxable Profit RangeHeadline CT RateMarginal Relief Formula
Small Profits RateProfits up to £50,00019%No Marginal Relief needed (Flat 19%)
Marginal Relief Band£50,001 – £250,00019% to 25% Effective(£250,000 - Taxable Profit) × 3/200
Main RateProfits over £250,00025%Flat 25% on full taxable profits

Understanding UK Corporation Tax Rules & Filing

Key insights into CT600 preparation, allowable deductions, capital allowances, and deadlines.

How Marginal Relief Works for UK Limited Companies

Under the UK tax regime introduced by HMRC, companies with profits between £50,000 and £250,000 do not pay a flat 25% tax. Instead, they receive Marginal Relief, which gradually increases their effective tax rate from 19% up to 25%.

The formula applies a fraction of 3/200 to the difference between the upper limit (£250,000) and your actual taxable profit.

CT600 Payment & Filing Deadlines

Unlike Individual Self Assessment, Corporation Tax has a dual deadline system:

  • Tax Payment Deadline: 9 months and 1 day after your accounting period ends.
  • CT600 Filing Deadline: 12 months after your accounting period ends.
Knowledge Base

Frequently Asked Questions (Corporation Tax)

UK Corporation Tax has two main rates: the Small Profits Rate of 19% for taxable profits up to £50,000, and the Main Rate of 25% for taxable profits over £250,000. Companies with taxable profits between £50,000 and £250,000 pay tax at 25% reduced by Marginal Relief.
ADVAQ UK Chartered Tax Advisory

Need CT600 Preparation & Marginal Relief Tax Filing?

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