Corporation Tax in 2026/27: What Businesses Should Know

For the 2026/27 tax year, the main UK Corporation Tax rate remains at 25%, while companies with profits of up to £50,000 generally pay the 19% Small Profits Rate.

For profits between £50,000 and £250,000, Marginal Relief may apply. This means the effective tax rate increases gradually rather than jumping directly from 19% to 25%.

An important detail is that these thresholds can be reduced when a company has associated companies. This means your business structure can affect your Corporation Tax calculation.

Businesses should also review allowable expenses and available tax reliefs, as these may reduce taxable profits and the final tax bill.

Corporation Tax is usually due 9 months and 1 day after the end of the accounting period, while the Company Tax Return must generally be filed within 12 months.