361. Computation of profits of a trade.

As for unincorporated businesses, the profits of a trade¹ must be calculated in accordance with generally accepted accounting practice², subject to any adjustment required or authorised by law in calculating profits for corporation tax purposes³. The Corporation Tax Act 2009 makes the following provisions, in addition to providing a series of rules to deal with specified circumstances, with regard to the computation of profits for corporation tax purpose, namely:

1.  

   (1)     subject to any express provision to the contrary, the same rules apply for corporation tax purposes in calculating losses of a trade as apply in the calculating profits⁴;

2.  

   (2)