Corporation tax is a tax on the profits of companies. Limited companies, foreign businesses with a UK branch, as well as clubs, associations, charities and societies, are all required to pay corporation tax.
The amount of tax to be paid depends on the profits of the business, and the rates were last changed on 6 April 2015.
For profits of £300,000 or less, companies face a 20 per cent rate. This is known as the Small Profits rate.
For profits above £300,000, companies face a 21 per cent rate. This is known as the Main rate.
These rates are both for an accounting period of one year, but if your accounting period is shorter than this, the thresholds will be adjusted accordingly.