How it works
19% below the small-profits limit; 25% above the main limit. Between them, tax = 25% of profit − 3/200 × (upper limit − profit).
A worked example
A standalone company with £100,000 taxable profits pays £22,750 after £2,250 marginal relief.
What to keep in mind
Assumes a 12-month accounting period, UK-resident non-ring-fence company, augmented profits equal taxable profits, and eligibility for the small-profits rate. Limits divide by total associated companies including this one. Excludes distributions, short periods and close investment-holding companies.
A common question
Do associated companies affect the result?
Yes. The £50,000 and £250,000 limits are divided by the number of associated companies, including the company being calculated.
Sources & rates
Rates checked on 23 September 2026.
For general information and planning, not personalised financial or tax advice. Verify important decisions with a qualified adviser.