United Kingdom taxation | Updated 9 October 2026
UK Corporation Tax Rates: 2026-27 and Historical Rates for 2011-2014
Corporation Tax is charged on the taxable profits of companies and certain other organisations. This guide explains the UK rates for financial year 2026-27, marginal relief, the historic rates for 2011 to 2014, and special rules for ring fence oil and gas profits.
UK Corporation Tax rates for 2026-27
| Category | Rate or limit |
|---|---|
| Small profits rate | 19% for profits up to £50,000 |
| Main rate | 25% for profits above £250,000 |
| Marginal relief band | Profits above £50,000 and up to £250,000 |
| Standard marginal relief fraction | 3/200 |
| Special rate for authorised unit trusts and open-ended investment companies | 20%, subject to applicable rules |
Companies with profits between the lower and upper limits may obtain marginal relief, producing a gradually increasing effective tax rate. The relief calculation also considers augmented profits and relevant adjustments. Refer to HMRC Corporation Tax rates and allowances and official rates and allowances.
Meaning of marginal relief
Marginal relief is a reduction in the Corporation Tax otherwise charged at the main rate for eligible companies with profits in the relevant band. It is governed by Part 3A of the Corporation Tax Act 2010. The limits are adjusted for associated companies and shorter accounting periods; certain companies do not qualify.
Historical UK Corporation Tax rates: 2011 to 2014
The following figures refer to financial years beginning 1 April of the stated year. They preserve the original article's historical comparison, with the 2014 small profits rate clarified.
| Measure | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|
| Small profits rate | 20% | 20% | 20% | 20% |
| Small profits upper threshold | £300,000 | £300,000 | £300,000 | £300,000 |
| Marginal relief lower limit | £300,000 | £300,000 | £300,000 | £300,000 |
| Marginal relief upper limit | £1,500,000 | £1,500,000 | £1,500,000 | £1,500,000 |
| Standard fraction | 1/400 | 3/400 | 1/100 | 3/200 |
| Main Corporation Tax rate | 21% | 23% | 24% | 26% |
| Special rate for authorised unit trusts and open-ended investment companies | 20% | 20% | 20% | 20% |
The £300,000 and £1,500,000 limits were based on a 12-month period and were subject to adjustments, including rules relating to associated companies. The main rate generally applied above the upper limit, while marginal relief could apply between the limits. Historical data: HMRC CTM03510 and HMRC CTM01750.
How Corporation Tax rates changed after 2014
| Financial years beginning 1 April | Standard non-ring fence regime |
|---|---|
| 2015 and 2016 | Single main rate of 20% |
| 2017 to 2022 | Single main rate of 19% |
| 2023 to 2026 | 25% main rate; 19% small profits rate; marginal relief between applicable limits |
From 1 April 2015, the small profits and main rates were unified at 20% for non-ring fence profits. The general rate fell to 19% from 1 April 2017. The two-rate structure with marginal relief returned from 1 April 2023.
Special rules for oil and gas ring fence profits
Ring fence profits broadly concern profits from oil extraction activities and oil rights in the UK and UK Continental Shelf, as defined in section 276 of the Corporation Tax Act 2010. The ring fence Corporation Tax main rate is 30%, and the small profits rate is 19%; the marginal relief fraction is 11/400. These rates are distinct from other petroleum-sector charges that may apply.
For financial years 2011, 2012, 2013 and 2014, the ring fence main rate was 30%, the small profits rate 19% and the ring fence fraction 11/400. See the HMRC rates annex and Finance Act 2011, section 6.
Corporation Tax on chargeable gains and indexation allowance
Companies may be liable to Corporation Tax on chargeable gains when disposing of chargeable assets. Indexation allowance historically recognised inflation in computing certain company gains. However, section 26 of the Finance Act 2018 froze indexation allowance at December 2017 for disposals from 1 January 2018. No indexation accrues for inflation after December 2017. See HMRC indexation allowance guidance.
Practical points for companies
- Identify the relevant financial year or years for the accounting period.
- Determine taxable total profits and augmented profits where applicable.
- Check associated company and short accounting period adjustments to thresholds.
- Review special rules for ring fence activities, investment companies and chargeable gains.
- Use the official Corporation Tax guidance when preparing a return and paying tax.
This article provides general information and historical comparisons. Rates and reliefs depend on the facts and applicable legislation; consult HMRC guidance or a qualified adviser for a specific company.