A calm, on-your-device estimate
How much Corporation Tax will my company pay?
If you hold property (or trade) through a limited company, your profits are taxed at 19%, 25%, or somewhere in between — and the “in between” part trips a lot of people up. Enter your company’s profit and this works out the tax, the marginal relief, and your effective rate. It runs on your device; nothing is sent or stored.
Information, not advice. This is an indicative estimate to help you plan — not a tax computation or advice about your own company. It covers a standard, non-ring-fence UK company for a 12-month period; it does not handle ring-fence (oil & gas) profits, the bank surcharge, R&D or creative credits, losses, or quarterly instalment dates. Confirm the figure with your accountant before you rely on it. Where finance is involved, we may introduce you to Broker’s Choice Limited t/a BCL Commercial Finance, which is not FCA-regulated; we’ll always tell you when we do.
Your company’s figures
How Corporation Tax is worked out
Since 1 April 2023, companies no longer pay one flat rate. There are two rates and a sliding scale between them: a small profits rate of 19% for profits up to £50,000, a main rate of 25% for profits over £250,000, and marginal relief in between, which raises the effective rate gradually from 19% to 25%. These have been unchanged for the 2024, 2025 and 2026 financial years.
In the £50,000–£250,000 band, every extra pound of profit is effectively taxed at 26.5% — higher than the 25% headline — because marginal relief is being withdrawn as profits rise. That is worth knowing if your profit is near the top of the band.
Common questions
What is marginal relief?
It is a reduction that smooths the jump between the 19% and 25% rates. Your tax is worked out at 25% on all your profit, then reduced by marginal relief of 3⁄200 × (£250,000 − your profit). On a £150,000 profit that relief is £1,500, bringing an effective rate of 24%.
What are “associated companies” and why do they matter?
Two companies are “associated” if the same person controls both — and control means owning more than half the shares or votes, not simply being a director. It doesn’t matter that the companies do completely different things.
A worked example. Say you are the sole director and owner of ABC Ltd and XYZ Ltd. You control both, so they are associated. That means two companies in total, so each company’s thresholds are cut in half:
- The 19% band drops from £50,000 to £25,000 for each company;
- The 25% main rate starts at £125,000 instead of £250,000.
So if ABC Ltd makes a £40,000 profit, on its own it would pay 19% — but because XYZ Ltd exists, part of that profit is now taxed at the higher marginal rate. You pay more, simply because you have two companies.
Using this calculator: you enter the number of your other companies. Working out ABC Ltd’s tax, you’d enter 1 (for XYZ). The calculator divides the limits by two for you. Dormant (inactive) companies don’t count; a company with any activity does. Because the rules can be subtle — especially where a spouse or family member owns a company — it’s worth confirming with an accountant.
Do landlords pay Corporation Tax?
Only if you hold property through a limited company. Most individual landlords pay Income Tax on rental profit (see our Liability Estimator). Holding through a company means Corporation Tax instead — one of the trade-offs the Section 24 guide explains.
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This is fixable — and you can do a lot of it yourself. For a straightforward case, the free tools take you through it step by step, no accountant needed. For the genuinely complex ones, a professional earns their keep — and we’re here if you want one, or if you’d simply rather not do it alone. The choice is yours.
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