Source: https://rivet.global/blog/uk-corporation-tax-rate-2026-marginal-relief
Published: 2026-07-14 · Updated: 2026-07-14 · By Alexia M.

# UK corporation tax rate 2026: main rate, small profits and marginal relief

UK corporation tax for 2026: the 25% main rate, the 19% small profits rate, marginal relief between £50,000 and £250,000, associated companies and payment dates.

## Key takeaways

- The UK main rate of corporation tax is 25% for profits above £250,000; the small profits rate is 19% up to £50,000.
- Between £50,000 and £250,000, marginal relief reduces the 25% charge; the marginal rate on that band is 26.5%.
- The limits are divided by the number of associated companies, so a group of two shares them.
- Most companies pay nine months and one day after the end of the accounting period; large companies pay in instalments.

"UK corporate tax rate 2026" sits beside "uk corporate tax rate compared to other countries" in Google's suggestions. The rates have not changed since April 2023, but the band in the middle catches many small companies out.

## The rates

| Taxable profits | Rate |
|---|---|
| Up to £50,000 | 19% |
| £50,000 to £250,000 | 25% less marginal relief |
| Above £250,000 | 25% |

## Marginal relief worked through

A company with profits of £150,000 and no associated companies:

1. Tax at 25%: £37,500.
2. Marginal relief: (£250,000 − £150,000) × 3/200 = £1,500.
3. Tax due: £36,000, an effective rate of 24%.

The slice between £50,000 and £250,000 is taxed at 26.5% at the margin, which is why timing of income near the thresholds matters.

## Associated companies

The £50,000 and £250,000 limits are divided by the number of associated companies. Two companies under common control each have limits of £25,000 and £125,000. Founders with a holding company and a trading company should check this.

## Dates

- Payment: nine months and one day after the end of the accounting period, for most companies.
- Return: 12 months after the end of the period.
- Large companies with profits above £1.5 million pay in quarterly instalments.

## Currency and the tax bill

Corporation tax is calculated in sterling, but exchange gains and losses on foreign currency balances can count. A UK company holding dollars should keep a clear ledger of conversions so the accountant can compute them.

## Paying into the United Kingdom: the local rail

| What | Detail |
|---|---|
| Local rail | Faster Payments |
| Run by | Pay.UK |
| Settlement | Seconds, 24/7; the scheme limit is £1,000,000, and each bank sets its own |

Bacs still carries most payroll and Direct Debits, on a three-day cycle.

Source: [Pay.UK: Faster Payment System](https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet records each receipt, conversion and payout with its rate and date, and exports statements that make year-end FX work straightforward. USD details come on the free Starter plan; EUR and GBP on Growth. Rivet is not a bank; regulated partner institutions hold the funds. See [salary vs dividends for a UK director](/blog/salary-vs-dividends-uk-director).

## Questions

### What is the UK corporation tax rate in 2026?

25% main rate and 19% small profits rate, with marginal relief between £50,000 and £250,000. These rates have applied since April 2023.

### How is marginal relief calculated?

Tax at 25% minus a relief worked out with HMRC's fraction (3/200) on the gap between £250,000 and your profits. HMRC has a calculator.

### When is corporation tax due?

For most companies, nine months and one day after the accounting period ends. The return is due 12 months after.

### Do foreign exchange gains count?

Yes. Exchange gains and losses on money held in other currencies generally count in taxable profits under the loan relationship rules. Ask your accountant how they apply to you.