Corporation Tax: Marginal Relief
You may be able reduce your tax bill by claiming Marginal Relief if your profits are between £300,000 and £1.5 million.
Your company or organisation may be able to claim Marginal Relief and pay less Corporation Tax if its taxable profits are between:
- the lower limit (£300,000)
- the upper limit (£1.5 million)
However, if your company has associated companies, the Marginal Relief limits for all the associated companies must be reduced. You can read about how to calculate the reduced limits in the Company Taxation Manual.
You can see how much relief you may able to claim by using an online tool to calculate Marginal Relief.
If your company has profits from ring fence activities (some UK Continental Shelf oil-related activities) you won’t be able to use the Marginal Relief calculator.
Companies that are close investment-holding companies at the end of a Corporation Tax accounting period can’t claim Marginal Relief.