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£50k–£250kThe relief band
TaperedSmooths 19% to 25%
Definition
Marginal relief applies to companies with taxable profit between the lower and upper limits. Rather than paying a flat 19% or 25%, the effective rate tapers upward across the band, so a company just over £50,000 does not suddenly pay 25% on everything.
In plain terms
It stops a cliff-edge where earning one extra pound of profit would trigger a much bigger tax jump. The rate creeps up smoothly instead.
Why it matters for your company
If your profits sit in the £50,000–£250,000 band, marginal relief shapes your bill. Estimate it with the corporation tax calculator.
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