355. Rates of corporation tax and calculating corporation tax payable.

Corporation tax is charged at the rate set by Parliament for the financial year and such rate is defined as 'the main rate'; for the financial year 2020 the main rate is 19 per cent1.

The first step in calculating the amount of corporation tax payable for an accounting period of a company is to apply the applicable rate of corporation tax to the profits of the company2. The profits of a company of an accounting period on which corporation tax is chargeable are defined as the 'total taxable profits'3. The total taxable profits of a company for an accounting