Corporate tax
United Kingdom
19% up to GBP 50,000 of profit, 25% above GBP 250,000, Marginal Relief in between.
To set up the company properly: your country of residence may tax the dividends you receive, and it may also tax the company's profits under its rules on foreign companies controlled by its residents. A company managed from your country may be treated as resident there. This is general information, not tax advice.
Destination taxes only, before tax treaties and before any tax in your country of residence. Assumption: one shareholder, an individual who is not resident in the United Kingdom, holds 100% of the company; the company has no associated companies and a 12-month accounting period.
- Between GBP 50,000 and GBP 250,000 the figure applies Marginal Relief with the 3/200 fraction to a company without dividend income from other companies.
The facts behind the figures
Corporate tax
- For the financial year starting 1 April 2026: small profits rate 19% for profits up to GBP 50,000, main rate 25% for profits over GBP 250,000, Marginal Relief in between with a standard fraction of 3/200. gov.uk
- Marginal Relief reduces the tax by the standard fraction applied to the difference between the upper limit and the company's augmented profits (Corporation Tax Act 2010, section 18B). legislation.gov.uk
- The GBP 50,000 and GBP 250,000 limits are divided by one plus the number of associated companies, and reduced for accounting periods shorter than 12 months. gov.uk
Tax on dividends paid abroad
VAT
- VAT standard rate 20%, reduced rate 5%, zero rate 0%. gov.uk
- Registration is required when taxable turnover for the last 12 months goes over GBP 90,000, or is expected to in the next 30 days. gov.uk
- A business based outside the UK that supplies goods or services to the UK must register for VAT whatever its turnover. gov.uk
Tax facts checked on 2026-10-23 from the official sources linked above. Rates change: check them with a firm before you act. General information, not tax advice.
Corporate tax in the United Kingdom: questions and answers
What is the corporate tax rate in the United Kingdom?
19% up to GBP 50,000 of profit, 25% above GBP 250,000, Marginal Relief in between. The facts, with their official sources, are listed under "The facts behind the figures".
Is tax withheld on dividends paid from the United Kingdom?
No tax deducted from dividends, for a shareholder who is an individual not resident in the United Kingdom. Your country of residence may tax the dividend you receive.
Can my own country tax the profit as well?
To set up the company properly: your country of residence may tax the dividends you receive, and it may also tax the company's profits under its rules on foreign companies controlled by its residents. A company managed from your country may be treated as resident there. This is general information, not tax advice.
How do I get an assessment for a company in the United Kingdom?
Use "Ask firms in the United Kingdom for an assessment": Accountanty forwards your request to firms we select in the United Kingdom, which assess your structure and income. The service is free for you.