No. It estimates a restricted Corporation Tax amount from figures you have already established.
Marginal Relief Calculator UK
Enter your values below to get the result first, then scroll for the full explanation and guidance.
Estimated corporation tax
£20,406.12Marginal relief applied
Estimated corporation tax: £20,406.12 (Marginal relief applied)
Profits fall between the small-profits and main-rate thresholds, so marginal relief reduces the 25% headline tax.
How this company tax estimate works
Profits fall between the small-profits and main-rate thresholds, so marginal relief reduces the 25% headline tax.
Result snapshot
A quick visual read of the values behind this result.
Taxable profits£90,000.00
Augmented profits£98,000.00
Lower threshold used£50,000.00
Upper threshold used£250,000.00
Marginal relief£2,093.88
Effective rate22.67%
Profit after tax£69,593.88
Recommended next checks
- →Adjust the associated-company count because it reduces the small-profits and upper thresholds.
- →Compare post-tax profit against alternative profit scenarios before finalising budgets.
- Taxable profits
- £90,000.00
- Augmented profits
- £98,000.00
- Lower threshold used
- £50,000.00
- Upper threshold used
- £250,000.00
- Marginal relief
- £2,093.88
- Effective rate
- 22.67%
- Profit after tax
- £69,593.88
Restricted to a 12-month accounting period wholly within the financial year starting 1 April 2026, with no ring-fence profits or other special rules. Enter only qualifying distributions that HMRC includes in augmented profits.
Try different values to compare results.
Enter taxable total profits, qualifying exempt distributions and the number of associated companies. This is a restricted liability estimate, not a Company Tax Return or relief-eligibility decision.
Estimated corporation tax
£20,406.12Marginal relief applied
Estimated corporation tax: £20,406.12 (Marginal relief applied)
Profits fall between the small-profits and main-rate thresholds, so marginal relief reduces the 25% headline tax.
How this company tax estimate works
Profits fall between the small-profits and main-rate thresholds, so marginal relief reduces the 25% headline tax.
Result snapshot
A quick visual read of the values behind this result.
Taxable profits£90,000.00
Augmented profits£98,000.00
Lower threshold used£50,000.00
Upper threshold used£250,000.00
Marginal relief£2,093.88
Effective rate22.67%
Profit after tax£69,593.88
Recommended next checks
- →Adjust the associated-company count because it reduces the small-profits and upper thresholds.
- →Compare post-tax profit against alternative profit scenarios before finalising budgets.
- Taxable profits
- £90,000.00
- Augmented profits
- £98,000.00
- Lower threshold used
- £50,000.00
- Upper threshold used
- £250,000.00
- Marginal relief
- £2,093.88
- Effective rate
- 22.67%
- Profit after tax
- £69,593.88
Restricted to a 12-month accounting period wholly within the financial year starting 1 April 2026, with no ring-fence profits or other special rules. Enter only qualifying distributions that HMRC includes in augmented profits.
Try different values to compare results.
Table of Contents
Table of Contents
About Marginal Relief Calculator UK
You enter your taxable profit and choose accounting year, and the calculator automatically applies the statutory marginal‑relief formula – (Upper Limit – Profit) × (Upper Rate – Lower Rate) ÷ (Upper Limit – Lower Limit) + Lower Rate – using thresholds (e.g., £50k‑£250k) and rates (19% small‑profits, 25% main). It returns the relief amount, total corporation‑tax due and effective tax rate, letting you forecast and avoid spikes. The next sections show examples and tips for better optimizing your UK tax position.
2026 Corporation Tax method
The estimate applies the 19% small-profits rate below the adjusted lower limit, 25% above the adjusted upper limit, and HMRC's 3/200 marginal-relief fraction between them. Both limits are divided by this company plus its associated companies.
Formula explained
Calculation flow
This calculator is structured for fast UK-focused estimates with clear inputs, repeatable logic, and instant results.
Formula
Input values -> calculation engine -> instant result
How the result is built
1Enter the values requested in the form.
2The calculator applies the configured formula logic.
3The result updates instantly with a breakdown.
4Use the output to compare scenarios quickly.
Example
Example: GBP 90,000 taxable profits and GBP 8,000 qualifying distributions gives approximately GBP 20,406.12 Corporation Tax.
Assumptions
- One 12-month accounting period wholly within the financial year beginning 1 April 2026.
- Non-ring-fence company eligible for the small-profits rate and marginal relief; special regimes are excluded.
- Taxable total profits and qualifying distributions have already been established under HMRC rules.
Source basis
- UK-focused calculator flow
- Structured input validation
- Instant result breakdowns
FAQ
Common questions
Trust and notes
Assumptions and important notes
This calculator is designed to give a fast estimate using the method shown on the page. Results are most useful when your inputs are accurate and the tool matches your situation.
Use the result as guidance rather than a final diagnosis or professional decision. If the result could affect health, legal, financial, or compliance decisions, verify it with a qualified source where appropriate.
- One 12-month accounting period wholly within the financial year beginning 1 April 2026.
- Non-ring-fence company eligible for the small-profits rate and marginal relief; special regimes are excluded.
- Taxable total profits and qualifying distributions have already been established under HMRC rules.
Method
UK calculator guidance
Last reviewed
April 17, 2026