Instead the tax will be pegged at 19% for at least the next two years.
The change means that the Chancellor will raise another £4.6bn in the next financial year, rising to £7.5bn in 2024/25.
The move will help pay for an ambitious infrastructure investment programme and other government support for business.
The freezing of Corporation Tax will affect all companies and unincorporated associations that pay Corporation Tax.
The measure means the Corporation Tax main rate will be held at 19% for the financial year beginning April and a planned tax cut has been dropped.
The Corporation Tax main rate will also be set at 19% for the financial year beginning 1 April 2021.
The Treasury says the change to previous plans "supports the government’s objective to raise revenue whilst maintaining the UK’s competitive rate of Corporation Tax."
In the summer 2015 Budget, the government announced a reduction in the Corporation Tax rate from 20% to 19% for the financial years beginning 1 April 2017, 1 April 2018 and 1 April 2019 with a further reduction from 19% to 18% for the financial year beginning 1 April 2020.
At Budget 2016, the government announced an additional 1% reduction to 17% for the financial year beginning 1 April 2020 but this has now been abandoned.
Legislation will be introduced in Finance Bill 2020 to amend the main rate of Corporation Tax for all non-ring fence profits to 19% for financial year 2020/21.
The Office for Budget Responsibility (OBR) has made an adjustment to its economic forecast to account for the measure.
Some 1.5m UK businesses pay Corporation Tax.
• Check out our developing coverage elsewhere on the site to find out more about what the Budget means for the Financial Planning and Paraplanning professions.