Trading (or business) profits

The calculation of trading (or business) profits or losses for an accounting period is to be made in accordance with generally accepted accounting principles (GAAP) (CTA 2009, s. 46).

Tax adjustments similarly follow normal rules but loan relationship debits and credits are specifically excluded from the calculation (see below) (CTA 2009, s. 380(2)).

There are two further exceptions to normal computation rules provided for by CTA 2009, s. 1260. In addition, special rules apply with regard to accounting periods of partnerships (CTA 2009, s. 1261). See below.

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