The profits of property business of companies, limited liability partnerships, partnerships where at least one partner is not an individual and trustees of a trust are calculated using generally accepted accounting practice (GAAP). In addition unincorporated businesses not eligible to calculate their profits under the cash basis, or that have elected out of the cash basis (see B6.202), will calculate their property profits using GAAP. In the main, the calculation of the profits of a property business under GAAP follows the rules that apply for trades1 with the trading income rules that apply for the purposes of computing the profits of a property business being listed in ITTOIA 2005, s 272(2) and CTA 2009, s 210; these are set out below with links to relevant commentary.
| Income tax | Corporation tax |
| Basic rules | | |
| Generally accepted accounting practice (see B2.102) | ITTOIA 2005, s 25 before 2017/18 | CTA 2009, s 46 |
| Losses calculated on same basis as profits (see B2.101) | ITTOIA 2005, s 26 | CTA 2009, s 47 |
| Receipts and expenses (see B2.108) | ITTOIA |
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