UK Business Tax Estimate
Estimate the Corporation Tax payable by a UK limited company using the 19% small profits rate, the 25% main rate and Marginal Relief where applicable.
Normally applies when augmented profits do not exceed the adjusted lower limit.
A tapered tax calculation may apply between the adjusted profit limits.
Normally applies when augmented profits exceed the adjusted upper limit.
The profit limits are automatically adjusted for associated companies and accounting periods shorter than 12 months.
Estimated Corporation Tax
This estimate uses the Marginal Relief calculation because augmented profits fall between the adjusted lower and upper limits.
On taxable profits of £100,000, the estimated Corporation Tax liability is £22,750. This leaves approximately £77,250 after Corporation Tax.
A company with augmented profits at or below the adjusted lower limit will normally pay Corporation Tax at the 19% small profits rate.
The 25% main rate normally applies when augmented profits exceed the adjusted upper limit. Marginal Relief may reduce the tax bill when augmented profits fall between the two limits.
Augmented profits generally include taxable total profits plus certain exempt distributions received by the company.
Augmented profits help determine which Corporation Tax rate applies. The tax itself is calculated on taxable total profits rather than on the exempt distributions.
The standard £50,000 and £250,000 limits are divided by the total number of associated companies, including the company being calculated.
For example, where a company has one associated company, the standard limits are normally divided by two.
The calculator provides a simplified estimate for an ordinary UK company. It does not calculate every relief, allowance, surcharge or specialist Corporation Tax rule.
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