Part 3Trading income

Chapter 3Trade profits: basic rules

46Generally accepted accounting practice

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, or

ii

the life assurance business of insurance companies, or

b

otherwise laying down special rules for the calculation of the profits of a particular description of business.