Part 3

Trading income
Chapter 3

Trade profits: basic rules

Generally accepted accounting practice
46
1
The profits of a trade must be calculated in accordance with generally accepted accounting practice, subject to any adjustment required or authorised by law in calculating profits for corporation tax purposes.
2
This does not—
a
require a company to comply with the requirements of the Companies Act 2006 (c. 46) or subordinate legislation made under that Act except as to the basis of calculation, or
b
impose any requirements as to audit or disclosure.
3
This section does not affect any provisions of the Corporation Tax Acts—
a
relating to the calculation of the profits of—
i
Lloyd's underwriters, ...
ii. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
otherwise laying down special rules for the calculation of the profits of a particular description of business.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)
S. 46(3)(a)(ii) and the word immediately preceding it omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 142