Once a company has established that it has a trade (for which see Practice Note: What is a trade for tax purposes?), it is required to calculate the Profits of its trade or trades for corporation tax purposes in accordance with generally accepted accounting practice, but subject to:
A company is required to calculate the profits of its trade or trades for corporation tax purposes in accordance with generally accepted accounting practice (GAAP), subject to any requirement to the contrary.
This means that a company's taxable trading profits will largely be the accounting profits of the company, unless: