UK corporation tax at 25%: a practical guide for growing SMEs
The UK main corporation tax rate is 25%, with a 19% small profits rate. Learn how marginal relief works and why it affects growth planning.
Published 2 October 2026 · By Naveed Murtaza
Source: HM Revenue & Customs
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How the rates work
The main rate is 25% on profits above £250,000. The small profits rate of 19% applies to profits up to £50,000. Marginal relief smooths the step in between.
Thresholds are reduced for associated companies and short accounting periods.
Why owners are searching for it
Founders crossing £50,000 profit often discover the effective rate between thresholds is higher than expected, leading to searches about planning and investment.
The government has committed to keeping the main rate at 25%, so planning around it is long-term.
What it means for marketing investment
Allowable marketing expenses reduce taxable profit. Investing in documented, measurable growth activity can be more efficient than holding surplus profit.
Always confirm specifics with an accountant.
What should marketers in UK do next?
Treat this trend as a planning signal rather than a headline. Map which customer questions it creates, build one clear explainer page or landing page that answers them, and run small, measured search and social tests before committing bigger budgets.
Track query growth in Google Search Console and Google Trends, watch competitor ads in the Meta Ad Library and Google Ads Transparency Center, and update your content whenever an official source changes its guidance. Naveed Murtaza helps businesses turn these shifts into practical campaigns, search content and lead journeys.