Corporation Tax rates explained for different profit bands

Corporation Tax isn't a single flat rate for every company — smaller companies pay a lower rate, larger ones pay a higher main rate, and there's a tapered zone in between.

Why profit level matters

Your company's rate depends on its level of taxable profit, with a lower rate applying below a certain threshold, a higher main rate above another, and marginal relief tapering the rate in between.

Associated companies

If you control more than one company, the profit thresholds are shared between them, which can push an individually small company into a higher effective rate than expected.

Why this affects planning

Understanding which band your company sits in affects decisions like timing of income, dividend planning, and whether restructuring group companies makes sense.

Our advice

We calculate your specific Corporation Tax position as part of your year-end accounts, and flag in advance if you're approaching a threshold where planning could help.