United Kingdom Corporate Income Tax
Detailed corporate income tax rates and rules for United Kingdom in 2026.
The main rate of UK corporation tax is 25%, applicable to companies with profits exceeding £250,000. A small profits rate of 19% applies to companies with profits of £50,000 or less. Companies with profits between £50,000 and £250,000 benefit from marginal relief, resulting in an effective rate between 19% and 25%. The UK offers various reliefs including R&D tax credits, Patent Box (10% rate on qualifying patent income), and Annual Investment Allowance.
Standard Rate
25%
Small Business Rate
19%
Additional Notes
The UK has a competitive corporate tax regime with extensive reliefs for innovation. The R&D tax credit scheme provides enhanced deductions or payable credits for qualifying research and development expenditure. The Patent Box regime allows a reduced 10% corporation tax rate on profits attributable to qualifying patents.
How United Kingdom Corporate Tax compares
United Kingdom’s corporate tax rate of 25% is the 69th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Europe’s regional average of 19%.
