UK limited company planning · 2026/27

UK limited company tax and dividend planner

Calculate Corporation Tax from confirmed final taxable total profits and augmented profits, then model a separate reserve distribution and the owner’s whole-Income-Tax change on its paid or due-and-payable tax date.

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2026/27 rules
Calculations stay in your browser
Official sources linked below

Company-to-owner scenario

Enter taxable total profits, augmented profits, and separately confirmed distributable reserves. Company tax and the owner’s whole-Income-Tax change are calculated as separate amounts.

Accounting period startAccounting period endCompany typeA close investment-holding company pays the main Corporation Tax rate without Marginal Relief.Taxable total profitsConfirmed taxable total profits, not turnover or accounting profit.Augmented profitsTaxable total profits plus qualifying exempt distributions received that are not excluded; some group distributions are excluded. This cannot be lower than taxable total profits.Associated companiesEnter the confirmed count, excluding this company. Include companies associated for any part of the period, including non-UK companies, subject to HMRC’s inactive-company exception.Specialist company-tax adjustmentsThe calculator applies rates to confirmed final inputs; it does not calculate specialist reliefs, credits, or tax-base adjustments.

Required company confirmationsThis is a UK-resident companyThis is not a ring-fence company

Confirmed distributable reservesMust be confirmed from company accounts and lawful distribution records.Share of reserves distributed (%)Owner’s declared share of this distribution (%)Use the allocation for this distribution; do not infer it from shareholding alone.Dividend tax date (paid / due and payable)Use when the dividend becomes due and payable: normally the actual payment date for an interim dividend; for a final dividend, the date specified in the resolution or the declaration date if none is specified. This planner supports 6 April 2026 to 5 April 2027.Owner taxpayer and holdingsThe second group needs rules outside this planner.Owner Income Tax regionScottish rates apply to non-savings income; dividend and savings rates remain UK-wide.Owner adjusted-net-income changesThe supported result requires no adjustments that change adjusted net income or extend tax bands.Owner other non-savings incomeOwner savings incomeOwner prior dividends in 2026/27

All values remain in this browser. This planner does not establish taxable profit or lawful distributable reserves.

Estimated result

Enter the supported company and owner scenario to see Corporation Tax, Marginal Relief, the owner’s whole-Income-Tax change, and net dividend.

Keep the company liability, reserves, and owner liability separate

The Corporation Tax calculation uses augmented profits to select the applicable period- and associated-company-adjusted limits. A separately confirmed reserve drives the distribution scenario, while the owner allocation is passed to the same whole-Income-Tax engine used by the focused dividend calculator.

Company tax

Use company type, taxable total profits, augmented profits, period length, and associated companies to calculate Corporation Tax.

Distribution

Model a percentage of separately confirmed distributable reserves and the owner’s declared share of that distribution.

Owner result

Show the owner’s whole-Income-Tax increase and net dividend without combining it with the company liability.

Questions and calculation boundaries

Does accounting profit equal distributable reserves?: No. The calculator requires a separately confirmed reserve input and does not determine whether a distribution is lawful.
How is Marginal Relief calculated?: For an eligible standard company in the marginal band, the tool applies (3/200) × (adjusted upper limit − augmented profits) × (taxable total profits ÷ augmented profits), rounded to the nearest penny.
How are short periods and associated companies handled?: The lower and upper limits are reduced for the accounting-period length and divided by the company plus the number of associated companies entered.
Why is the dividend tax date required?: A dividend is charged in the owner’s tax year when it becomes due and payable. For an interim dividend that is normally the actual payment date; for a final dividend it is the date specified in the resolution, or declaration date when no date is specified.
What happens for a close investment-holding company?: The supported CIHC scenario uses the 25% main rate and does not apply the small-profits rate or Marginal Relief.
Does this recommend salary versus dividends?: No. Payroll, pensions, benefits, director loans, and remuneration optimisation are outside this tool.

Supported calculation

Confirmed UK-resident, non-ring-fence limited company
Accounting period contained within 1 April 2026 to 31 March 2027
Standard-company rates and Marginal Relief, plus CIHC main-rate treatment
Confirmed final tax base, augmented profits, associated-company count, reserves, distribution, and owner allocation
Dividend paid or due and payable within the 2026/27 Income Tax year
UK-resident individual owner with taxable holdings and no adjusted-net-income or rate-band adjustments

Outside this tool

Group relief, losses, R&D relief, and capital-allowance computation
Gift Aid, pension, loss-relief, or other owner adjusted-net-income changes
Director loans, salary, pension, and benefit planning
VAT, tax-return filing, and legal confirmation of distributable reserves

Method, evidence, and sources

The calculation uses uk-company-tax-2026-v2, the statutory 3/200 Marginal Relief fraction, augmented profits, and the same effective-dated whole-Income-Tax engine as the focused dividend tool. Corporation Tax and owner Income Tax are reported separately. A qualified accountant or tax adviser should confirm the company type, tax base, associated-company position, reserves, and final liabilities.