UK Corporation Tax Rates 2025
| Profit Level | Rate |
|---|---|
| Up to £50,000 (small profits rate) | 19% |
| £50,001 – £250,000 (marginal relief) | 19–25% (effective) |
| Over £250,000 (main rate) | 25% |
Marginal Relief
Companies with profits between £50,000 and £250,000 qualify for marginal relief, which gradually increases the effective rate from 19% to 25%. The relief is calculated using a specific HMRC formula based on the fraction of profits that fall between the lower and upper limits.
Allowable Deductions
Corporation tax is charged on profits after deducting allowable business expenses. These include salaries, employer pension contributions, office costs, equipment, professional fees, and business loan interest. Capital allowances can be claimed on qualifying assets.
Corporation Tax Payment Deadline
For companies with profits under £1.5m, corporation tax is due 9 months and 1 day after the end of the accounting period. The company tax return (CT600) must be filed within 12 months of the accounting period end.