Corporation tax is a tax that is levied on the profits of companies and other legal entities in the UK. Corporation tax is paid by companies on their taxable profits, which are calculated by subtracting allowable expenses and reliefs from total income.

The rate of corporation tax that is paid depends on the level of the company's profits. Currently, the main rate of corporation tax in the UK is 19%, and a lower rate of 17% applies to profits up to £50,000. There are also special rates for certain types of companies, such as small companies and companies in the oil and gas sector. Corporation tax is an important source of revenue for the UK government and is a key consideration for companies when planning their financial affairs. It is important for companies to understand the corporation tax rules and to accurately calculate and pay their corporation tax liabilities.