Corporation tax is the tax paid by companies on their profits. Unincorporated organisations (such as clubs and societies) also pay corporation tax, if they have taxable income. Partners in both traditional and limited liability partnerships and sole traders pay income tax instead.
Companies are taxed on the profits made in an accounting period - normally their financial year. However the company going into liquidation or ceasing to trade can also trigger the end of an accounting period.
Tax rates are set for the tax year and where the company's accounting period and the tax year do not coincide, the profits must be time-apportioned to decide which rate should apply. So, for example, if you made £365,000 profit you would have
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